HSA Resources

HSA Frequently Asked Questions

Below are some of the most commonly asked questions about HSAs. Click a topic and drill down to find the answer.

You can also find additional information in the Education Video Library.

Select a Category and then Select a Question.

• HSAs

  • What is a Health Savings Account (HSA)?

  • How does an HSA work?

  • Who is eligible to open an HSA?

  • Who is eligible to contribute to an HSA?

  • How is money deposited to my HSA?

  • What is the value of an HSA?

  • Why establish an HSA? What are the advantages?

  • What is a high-deductible health plan (HDHP)?

  • How do I know if my health plan is a "qualifying (or qualified)” high-deductible health plan (HDHP)?

  • How do HSAs differ from health care flexible spending accounts (FSAs)?

  • How is an HSA different from a savings account?

  • Can my spouse and I have a joint HSA, like our regular checking account?

  • Why is my employer offering an HSA in conjunction with a qualified HDHP?

  • May I have more than one HSA?

• Eligibility & Enrollment

  • Can I have an HSA in addition to an IRA or other qualified retirement plan?

  • My spouse's employer provides low-deductible family coverage at no cost. I am covered under my spouse's plan. If I enroll in my employer's qualified HDHP, am I eligible for an HSA?

• Contributions

  • Can I contribute stock to my HSA?

  • Does how much I contribute to my IRA limit how much I can contribute to my HSA?

• Distributions

  • Can I pay out-of-pocket eligible expenses with after-tax dollars instead of using my HSA funds?

  • What health care expenses does my HSA cover?

• Manage Your HSA

  • What happens to my HSA if I become disabled?

  • What happens to my HSA if I quit my job or otherwise leave my employer?

• No Longer a Member

  • I no longer participate in a qualified HDHP. Can I still receive tax-free distributions to reimburse my qualified expenses or those of or my family?

  • How are distributions from my HSA taxed after I am no longer eligible to contribute?

• Reaching Age 65

  • What happens to the money in my HSA after I reach age 65?

• Death

  • What happens to my HSA when I die?

• Tax Considerations

  • What does pre-tax mean?

  • What is an "above the line" tax deduction?

  • Is there a limit on how much I may contribute to my HSA and deduct from my taxes each year?

  • If I close my HSA, are there any tax penalties?

  • When will the 20 percent penalty be assessed for a distribution for non-qualified expenses?

  • How are distributions from my HSA taxed?

  • How are distributions from my HSA taxed after I am no longer eligible to contribute?

  • What tax forms will I receive to include with my annual tax filings?

  • What about taxes on the money in my HSA not used for medical expenses?

  • How is my HSA taxed?

  • What is the tax treatment of contributions made by a family member or anyone else to my HSA?

• Rollovers/Transfers, FSAs and HRAs

  • Can I roll over or transfer funds from my HSA or Medical Savings Account (or Archer MSA) into an HSA?

  • Can I roll over or transfer funds from my HSA to my IRA?

  • Can I roll over or transfer funds from my IRA to my HSA?

  • What are Medical Savings Accounts [MSAs], Health Reimbursement Accounts or Health Reimbursement Arrangements [HRAs], and Flexible Spending Accounts [FSAs]?

  • Can I have an HSA and an HRA and/or FSA?

  • What is the difference between health care flexible spending accounts (FSAs) and HSAs?

Eligible Expenses?

Do you know which expenses are eligible for purchase with your HSA?.

Ready to Enroll?

If you've made the decision that an HSA is right for you, then you may apply online.

How much can I contribute?

The only way to get the maximum tax deduction for your HSA is to maximize your contributions.