10 Reasons to Max Out Your HSA (2024)

If you're able, reach the HSA contribution limit each year. Here are the top 10 reasons to max out your health savings account (HSA).

HSAs always aligns with the calendar year (which may or may not align with your employer's plan year).

1. It's a gift to your future self!
2. HSAs are like a “health 401(k).” Dip into HSA funds anytime to pay for qualified expenses, or—even better—
3. Let funds build to pay for qualified health care expenses after you retire.
4. It’s a personal account. You keep your HSA if you switch jobs or retire, and funds rollover year-after-year.
5. HSAs are triple tax advantaged. Contributions aren’t federally taxed; funds grow tax-free; and funds used to pay for qualified expenses aren't taxed! (Most state laws treat HSAs similarly, but there are exceptions).
6. While you must have an HSA-eligible plan to contribute to an HSA, you can always spend funds on qualified health expenses. Even if, in the future, you’re no longer on an HSA-eligible plan.
7. Once you’re 65 or older, you can use HSA funds for any reason. Taxes will apply for non-qualified expenses, but there’s no longer a 20% penalty.
8. There’s no time limit for reimbursing yourself. As long as you had an HSA when you incurred the qualified expense, it makes no difference how much time has passed.
9. If you ever have an unexpected medical need, funds are immediately and readily available for qualified health expenses.
10. Funds can be used on you, your spouse, and anyone you claim on your Federal Income Taxes—even if they are not on your health plan.

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