Health Savings Account (HSA) What is an HSA?Health Savings Accounts (HSAs) are tax-advantaged medical savings accounts available to United States taxpayers who are enrolled in a high deductible health plan (HDHP). HSAs are owned by the individual, differentiating them from company-owned health reimbursement arrangements (HRAs) that are an alternate tax-deductible source of funds paired with HDHPs. Unlike a flexible spending account (FSA), HSA funds roll over and accumulate year over year if not spent, with the ability to earn tax-free interest on the account. HSA funds may be used to pay for qualified medical expenses at any time without a federal tax liability.What is a Qualified High Deductible Health Plan?A high deductible health plan (HDHP) is a health insurance policy that features higher deductibles and lower premiums than traditional insurance plans. HDHPs can be combined with a health savings account that allows for payment of qualified out of pocket medical expenses on a pre-tax basis.For 2018, the HDHP required annual deductibles are $1,350 for single coverage and $2,700 for family coverage.The 2019, the HDHP required annual deductibles are $1,350 for single coverage (a $0 increase from 2018) and $2,700 for family coverage(a $0 increase from 2018). For 2018, the out of pocket maximums are $6,650 for single coverage and $13,300 for family coverage.For 2019, the out of pocket maximums are $6,750 for single coverage (a $100 increase from 2018) and $13,500 for family coverage (a $200 increase from 2018).How Much Can I Contribute to an HSA?For 2019, the HSA contribution limits are $3,500 for single coverage and $7,000 for family coverage. There is also a $1,000 catch up contribution allowed for those who are 55 years or older.2018 IRS Limits Single Plan Family PlanMaximum Contribution Limit $ 3,450 $ 6,900Minimum Deductible $ 1,350 $ 2,700Maximum Out-of-pocket $ 6,650 $ 13,300Catch-up Contribution (55+) $ 1,000 $ 1,0002019 IRS Limits Single Plan Family PlanMaximum Contribution Limit $ 3,500 $ 7,000Minimum Deductible $ 1,350 $ 2,700Maximum Out-of-pocket $ 6,750 $ 13,500Catch-up Contribution (55+) $ 1,000 $ 1,000What Are Qualified Medical Expenses?You can pay for a wide range of IRS-qualified medical expenses with your HSA, including many that aren't typically covered by health insurance plans. This includes deductibles, co-insurance, prescriptions, dental and vision care, and more. For a complete list of IRS-qualified medical expenses, visit irs.gov.