What Is an HSA and Why Should You Be Contributing?

A Health Savings Account (HSA) is more than just a savings tool—it's a long-term investment in your financial and physical well-being. Available to those enrolled in a qualified High Deductible Health Plan (HDHP), an HSA offers unmatched flexibility, tax benefits, and control over your healthcare dollars.

Why should you contribute to an HSA?

1. Triple Tax Advantage:

• Contributions are tax-deductible (or pre-tax if made through payroll)

• Growth is tax-free through interest or investments

• Withdrawals for qualified medical expenses are also tax-free

  
  

2. Your Money, Your Control: Unlike Flexible Spending Accounts (FSAs), HSAs are not "use-it-or-lose-it." Funds roll over year to year and remain with you—even if you change jobs or retire.

3. Immediate & Long-Term Use: You can use HSA funds today for everyday medical expenses like:

• Prescriptions

• Doctor visits

• Dental and vision care

• Mental health services

  
  

Or save for the future:

• Medicare premiums

• Long-term care

• Retirement medical expenses

  
  

4. Investment Potential: Many HSA providers allow you to invest your funds once you reach a certain threshold (often $1,000–$2,000). This means your HSA can grow like a retirement account, giving you long-term compounding benefits.

5. Retirement Strategy: After age 65, HSA funds can be used for any purpose without penalty (you'll just pay income tax if it's not for a qualified medical expense). This makes your HSA a hybrid health and retirement savings account.

How Much Should You Contribute? For 2025, the IRS contribution limits are:

• $4,150 for individuals

• $8,300 for families

• + $1,000 catch-up contribution if you’re age 55 or older

  
  

Even small contributions—like $25 per paycheck—can add up quickly, especially when combined with employer contributions.

Ready to take advantage of your HSA? Whether you need help setting up an account or creating a contribution strategy, we’re here to help you make the most of your benefits.

Save smart. Spend wisely. Plan for the future. Let’s talk about how your HSA fits into your bigger financial picture.