We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. Health savings accounts (HSA) give applicants a tax-advantaged way to contribute money on a pre-tax basis into an account where it can grow tax-free until it is used for qualified healthcare expenses. In order to open one, you or your family must be covered under a high-deductible health plan. If you’re eligible, you can contribute up to $3,850 in an HSA for self-only coverage in 2023, and families can contribute up to $7,750. An HSA can be opened with any provider, and you can opt for coverage for yourself or your family. The best HSA providers are the ones that have no fees and no or low minimum deposits required. These providers also offer debit cards to pay for health expenses and have easy-to-navigate online account management tools. To identify the top HSA providers, we examined more than 15 companies based on important features such as fees, investment options, how easy it is to open an account, debit card access, and minimum account requirements. Best Health Savings Account (HSA) Providers Best Health Savings Account (HSA) Providers Final Verdict Compare the Best Health Savings Account FAQ Methodology Key Specs Why We Chose It HealthEquity is our best overall because you can invest in Vanguard funds with low expense ratios, and it provides several features, including a mobile app and no account management fees. The company also offers accounts with no minimum investment threshold, so every dollar you put in your HSA can be invested right away. Pros & Cons Pros Invest in low-cost Vanguard funds with no minimum investment threshold Debit card for healthcare expenses Average underlying fund fee of 0.15% for Vanguard fund options Easy-to-use mobile app Cons Annual maintenance fee varies, but is usually $36 per year Required annual investment fee of 0.25% Overview HealthEquity was founded in 2002 and in 2021, expanded its holding by acquiring HealthSavings Administrators and Further, both of which are HSA providers. The transition of HealthSavings' accounts to the HealthEquity platform is expected to be completed by the company's first quarter of the fiscal year 2023. We chose HealthEquity for our best option overall because not only will it continue to use HealthSavings' model of offering low-cost Vanguard and Dimensional Funds options with its HSAs, but there's no minimum account balance for your funds to be invested. You can also use a simple mobile app for on-the-go account management, including monitoring your spending and balance and submitting claims. You can open a health savings account with this provider online in less than 20 minutes, and you'll receive a debit card that lets you pay directly for eligible medical expenses from your account if you prefer. The company also offers a wealth of educational materials, including videos and webinars, that can help you select the right combination of investments for your account and 24/7 live account support. Key Specs Why We Chose It Fidelity allows you to invest your HSA money into stocks, bonds, mutual funds, ETFs, and fractional shares. Fidelity even offers a handful of fund options that are only available to clients with a Fidelity HSA, including Fidelity Health Savings Fund (FHLSX) and Fidelity Health Savings Index Fund (FHSNX). There's no minimum balance required to open an account, and the HSA doesn't charge monthly account fees. Fund your Health Savings Account by transferring from a bank account or making a mobile check deposit. If you're looking to use your HSA for qualifying expenses, you can use the Fidelity HSA debit card for Fidelity BillPay. Pros & Cons Pros Invest your HSA into high-quality, low-cost Fidelity mutual funds and index funds No deposit minimums or account management fees Receive a debit card you can use to pay for eligible healthcare expenses Cons Underlying fund expenses apply when you invest your HSA money, and these vary Some Fidelity HSA investment options come with expense ratios as high as 0.96% (as of March 1, 2023) Overview If you’re looking for an HSA provider who has been around for a while, you might be interested to know that Fidelity was founded in 1946. However, we chose Fidelity for our ranking not for their longevity, but because you can invest your HSA funds in many low-cost options aimed at long-term growth. Fidelity even offers two funds specifically for their HSA customers, including Fidelity Health Savings Fund (FHLSX) and Fidelity Health Savings Index Fund (FHSNX). FHSNX, in particular, has an expense ratio of just 0.24% (as of March 1, 2023), which makes it an affordable option for long-term investors who want to grow their HSA balances over time. Plus, Fidelity lets you choose from other investments laid out on their website, including dozens of funds from Fidelity, JP Morgan, BlackRock, and others. Fidelity doesn’t charge any fees for account opening or account maintenance, nor do you have to pay any fees to use your associated debit card account. They also make it easy to open and fund your account online. Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. Key Specs Why We Chose It Lively doesn't charge fees to open or maintain a health savings account, including no hidden fees. Lively is a solid option if you want an account where fees won't eat away at your savings. Pros & Cons Pros No fees for their HSAs Open and fund your account with ease and entirely online Invest your HSA funds with Charles Schwab Lively offers a mobile app that lets you track your HSA funds on the go Get a free debit card you can use to pay medical bills Cons Only one of Lively’s two investment solutions is free—the other has a 0.50% annual fee It's a new company with only a few years of experience Overview Lively was founded in 2016, so this HSA provider hasn’t been around that long. However, we chose Lively as the best for no fees because their HSAs don’t come with any account opening fees, maintenance fees, fund transfer fees, debit card fees, or hidden fees of any kind. Lively also gives you a debit card connected to your account, which lets you pay for medical expenses over the phone or in an office, with the money being automatically debited from your HSA. Lively is fully online, and they also offer a mobile app that can help you track your HSA funds using your favorite device. You can also use the app to monitor your healthcare payments and keep track of your health insurance deductible. Lively also offers paperless account rollovers and trustee-to-trustee transfers of funds. Lively offers two investment solutions for users to choose from. Charles Schwab’s health savings brokerage account is $24 per year for balances under $3,000, and Devenir’s Guided Portfolio incurs a 0.50% annual fee. However, neither option requires a minimum balance to invest your money, so you can start small if you prefer. Key Specs Why We Chose It The best option for families is The HSA Authority, based on their wealth of online account management options and that you can easily delegate financial tasks to other members through their online banking portal. Their online functionality makes it easy for two parents or partners to oversee HSA funds, make contributions, or pay medical bills for the entire family. Pros & Cons Pros Superior online functions for families, such as shared account access, online bill pay, mobile deposit, text banking, and more Receive a Visa debit card for medical bills Easy to open and fund online Cons $36 annual fee for investment oversight Expense ratios among investment options vary Overview We chose The HSA Authority as our best option for families for a few reasons, but it all starts with the fact that they offer many ways to co-manage an HSA online. Their shared portal lets the main account holder delegate and share tasks with other members of the plan, and you can also benefit from online bill pay, text banking, mobile deposits, e-statements, and other web-based services. The HSA Authority was founded quite recently, in 2004, but it’s important to know this HSA provider is actually part of Old National Bank, which has its own history that goes back to 1834. You don’t need a minimum balance amount to open an account with The HSA Authority. In terms of their investment options, The HSA Authority lets you invest in mutual funds through their investment partner, Devenir. A $36 annual account management fee applies to your account, and you’ll earn only a nominal amount of interest on your money until you’re able to invest for the long term. Fortunately, HSAs with The HSA Authority are easy to open and fund online, and you can add money to your account at any time, thanks to their online banking and account transfer features. You’ll also get a Visa debit card you can use to pay medical bills directly from your HSA if you prefer. Key Specs Why We Chose It We chose HSA Bank based on the fact that you can open an account online in less than 10 minutes with no required minimum to get started. This means you can start saving any amount and you can easily fund your account online. Pros & Cons Pros No minimum balance to open an account Option to invest your funds with TD Ameritrade or Devenir No account management fees if you keep at least $3,000 in your HSA Cons $25 fee for closing your account Investment fees vary Pay $2.25 monthly account management fee if your balance is below $3,000 May incur investment fee unless your account balance is $5,000 or more Overview HSA Bank’s history goes back to 1913, when it began as the State Bank of Howards Grove in Wisconsin. This was long before HSAs existed, so they operated as a community bank, offering traditional banking products. However, the company has grown and changed its focus to HSAs, flexible spending accounts (FSAs), and other health reimbursem*nt arrangements, and we chose them for our review as best for no minimum balance requirement. Not only does HSA Bank offer flexible HSAs with no money required to get started, but they also offer a client assistance center that is open 24 hours a day. However, you should note that there is a $2.25 monthly account management fee if your balance drops below $3,000. With HSA Bank, you can earn a fixed interest rate on your savings or invest your account into stocks, bonds, mutual funds, ETFs, and other investment options with Devenir or TD Ameritrade. There is no minimum balance to invest your HSA funds with this provider. Key Specs Why We Chose It Further is the best HSA provider for employers based on the selection of accounts they help manage. Business owners, including owners of small firms, can turn to Further for help overseeing employer HSAs, flexible spending accounts (FSAs), transportation reimbursem*nt accounts (TRAs), dependent care assistance programs (DCAPs), and more. Pros & Cons Pros Oversee several different employee reimbursem*nt accounts and savings accounts in one place Employees can grow their balance with interest rates as high as 0.70% Investment options available with Charles Schwab once an account balance grows to $1,000 or more Cons Investment options have underlying fees that vary Further charges an additional $18 per year for investment accounts Further charges varying fees to employers who open accounts for their workers, and you have to call in for pricing Overview Further was founded in 1989 to streamline the healthcare payment process and has since been acquired by HealtheEquity. And while you can sign up for an individual or family HSA with Further, this provider stands out due to its wealth of healthcare account management options offered to employers. With the Further HSA, businesses can expect streamlined administration on a single platform, and employees can manage their HSAs using their mobile device while enjoying the perks that come with a simplified claims and reimbursem*nt process. The Further HSA can be offered as a standalone product to employees, and you can also pair it with other options like FSAs, transportation reimbursem*nt accounts, dependent care assistance programs, and more to attract and retain the best talent. Further HSAs can earn a variable interest rate based on market conditions, but employees can invest their funds with Charles Schwab once they have at least $1,000 in their HSA. An annual fee of $18 is required for investment accounts with Charles Schwab, and included investments come with their own fees that vary. Finally, one downside to consider is that Further charges ongoing fees to employers who open an HSA or another reimbursem*nt account, but these fees vary, and you have to call in to receive pricing. There are many options when it comes to choosing a health savings account. Some companies like Fidelity and Further don't charge any account fees, and most offer an HSA debit card so medical bills can be paid right out of your account. You can open an HSA in a matter of minutes online with most companies, and our top choice, HealthEquity, offers accounts with no minimum investment threshold. HealthEquity was the best choice for several reasons, including its zero account management fees, robust mobile app, and offering of Vanguard's low-expense ratio funds to invest your dedicated HSA dollars. A health savings account (HSA) is a tax-advantaged account. You must have a high-deductible health insurance plan (HDHP) with a minimum deductible of $1,500 for individuals or $3,000 for families in 2023. Your plan's maximum out-of-pocket limit for the year cannot exceed $7,500 for individuals and $15,000 for families. You can deduct contributions up to these limits on your tax return, which grow tax-free in an investment account. With a health savings account, individuals can contribute up to $3,850, and families can contribute up to $7,750 in 2023 if they meet the plan's criteria. HSA funds are owned by the account holders and they roll over and never expire, unlike a flexible spending account. A flexible spending account (FSA) is a savings account that lets employees contribute a portion of their earnings to pay for medical expenses and dental bills. Both accounts are tax-advantaged, meaning they are deducted from the user's taxable income. But by the end of the plan year, if an FSA account holder hasn't spent their funds, the account balance will disappear unless their employer offers a grace period of up to two-and-a-half months. If you have a high-deductible health insurance plan and qualify for an HSA, opening and funding an account is definitely worth it. Even if you do not invest your HSA funds and only add money to your account as you need it, funneling contributions into an HSA before you pay medical bills can help you reduce your taxable income and save money on taxes during the year you contribute. At the age of 65, you can withdraw money from your HSA penalty-free without using the funds for healthcare expenses. This can make an HSA account a smart alternative for backup retirement savings you can tap into if you don’t wind up using your money for healthcare expenses. Some HSA providers offer accounts without an annual or monthly account management fee. However, all providers who let you invest your HSA funds charge investment fees, and often more than one type. For example, you might pay an annual fee to your HSA provider for oversight of the underlying investments in your HSA, but you will also pay expense ratios that vary depending on the investments you choose. If you need to withdraw the money from your HSA for non-medical expenses before age 65, you can do so. However, you can expect to fork over a lot of your proceeds right away. Specifically, you’ll have to pay a 20% penalty for withdrawing funds early and income taxes on the amounts you withdraw. To find the best HSAs on the market today, we compared more than 15 of the top providers to see how they stack up. Criteria we considered included ongoing fees and account management costs, investment options, ease of opening an account, debit card access, and minimum account requirements. The HSA providers who made our ranking tend to stand out due to their lack of fees, their unique or lucrative investment options, or the technology they use. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Congressional Research Service. "Health Savings Accounts (HSAs)." Lively. "HSA Pricing." Wellesley. "Changes to Your HSA When You Reach 65." Michigan Civil Service. "Can I Withdraw the Funds From My HSA at Any Time?" Related ArticlesBest Health Savings Account (HSA) Providers of 2023
Best Overall : HealthEquity
Best Investment Options : Fidelity
Best for No Fees : Lively
Best for Families : The HSA Authority
Best for No Minimum Balance Requirement : HSA Bank
Best for Employers : Further
Final Verdict
Compare the Best Health Savings Account
HSA Fee Mobile App Debit Card HealthEquity- Best Overall Yes Yes Yes Fidelity-Best for Investment Options No Yes Yes Lively - Best for No Fees No Yes Yes The HSA Authority - Best for Families Yes Yes Yes HSA Bank- Best for No Minimum Balance Requirement Yes Yes Yes Further-Best for Employers Yes Yes Yes Frequently Asked Questions
Am I Eligible for an HSA?
How Does an HSA Differ From a Flexible Spending Account?
Are HSAs Worth It?
Do All HSAs Have Monthly Fees?
Is There a Penalty to Use HSA Funds for Non-Health Expenses?
Methodology
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FAQs
Best Health Savings Account (HSA) Providers of 2023? ›
The best HSA providers are the ones that have no fees and no or low minimum deposits required. These providers also offer debit cards to pay for health expenses and have easy-to-navigate online account management tools.
What can HSA be used for 2023? ›- Abortion.
- Acupuncture.
- Ambulance fees.
- Artificial limbs and teeth.
- Bandages.
- Birth control pills.
- Body scans.
- Breast pumps and supplies.
| Single Coverage | Family Coverage | |
|---|---|---|
| HSA Contribution Limit for 2023 (Employee + Employer) | $3,850 | $7,750 |
| HSA Catch-Up Contribution Limit for 2023 (Age 55 and Older) | + $1,000 | + $1,000 |
The best HSA providers are the ones that have no fees and no or low minimum deposits required. These providers also offer debit cards to pay for health expenses and have easy-to-navigate online account management tools.
Which HSA has no monthly maintenance fee? ›Fidelity HSA®
The account has no monthly account fees and no minimum balance required to open the account. Fidelity offers a wide range of investments , including stocks and bonds, mutual funds, and ETFs all commission-free¹. You can also invest in fractional shares.
With the passage of the CARES Act in March 2020, tampons and other menstrual care products are now fully FSA-/HSA-eligible.
Can I use HSA for dental? ›You may already know that your HSA or FSA can be used for things like dental visits and crowns—but did you also know they can be used toward braces and other orthodontic work? It's true. FSAs and HSAs can help you get reimbursed for a wide variety of dental treatments for you and your family.
What is the catch up for 2023 FSA contribution limits? ›The IRS has increased the Flexible Spending Account (FSA) contribution limits for the Health Care Flexible Spending Account (HCFSA) and the Limited Expense Health Care FSA (LEX HCFSA). For 2023, participants may contribute up to an annual maximum of $3,050 for a HCFSA or LEX HCFSA.
What happens to unused HSA funds at retirement? ›You may lose the ability to contribute the max amount to your HSA if you lose your job part way through the year. But, the money that is in your HSA will remain there and can stay invested. Unlike flexible spending accounts, unused funds in an HSA are never forfeited and can remain in the account forever.
How much of my 2023 FSA can I roll over to 2024? ›The Internal Revenue Service has upped the contribution limit on flexible spending accounts to $3,050, allowing 20% of that amount, or $610, to carry over from 2023 into 2024.
What's one potential downside of an HSA? ›
What Is the Main Downside of an HSA? The main downside of an HSA is that you must have a high-deductible health insurance plan to get one. A health insurance deductible is the amount of money you must pay out of pocket each year before your insurance plan benefits begin.
What is the best strategy for an HSA account? ›A good strategy is to contribute enough to the HSA to cover the next year or more of out-of-pocket medical expenses. Contributing the maximum annual contribution and investing for the long term is the best way to get the most benefit from your HSA.
How do I avoid maintenance fees on my HSA? ›You would incur this fee every time you overdraw your account. To help avoid this fee, make sure that you have enough funds in your HSA before you make a payment.
How to avoid HSA Bank service fee? ›Account Closing $25.00 To avoid the fee, keep your account open with HSA Bank and continue to use your HSA funds for eligible expenses.
What happens to HSA if you don't use it all? ›But remember, HSA stands for Health Savings Account, and the opportunity to save and build your balance over time is one of the important features of your account. If you don't spend the money in your account, it will carryover year after year. Your HSA can be used now, next year or even when you're retired.
Can I buy a treadmill with my HSA? ›A treadmill may be eligible for reimbursem*nt with a Letter of Medical Necessity (LMN) with a flexible spending account (FSA), health savings account (HSA) and health reimbursem*nt arrangement (HRA).
At what age can you no longer have an HSA? ›At age 65, most Americans lose HSA eligibility because they begin Medicare. Final Year's Contribution is Pro-Rata. You can make an HSA contribution after you turn 65 and enroll in Medicare, if you have not maximized your contribution for your last year of HSA eligibility.
Can I buy toilet paper with my HSA card? ›Toiletries are not eligible for reimbursem*nt with a flexible spending account (FSA), health savings account (HSA), health reimbursem*nt arrangement (HRA), limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA). What are toiletries?
Can you use HSA for eyeglasses? ›Yes! You can definitely use funds from your flexible spending account (FSA) or health savings account (HSA) to purchase prescription glasses. (FSAs and HSAs can be used for many other vision- and eye health-related expenses, too, but we'll discuss that more in a bit.)
Can you use HSA for vitamins? ›According to the IRS, you cannot use your HSA to pay for vitamins or supplements that are taken for general health. However, you can use your HSA to pay for vitamins or supplements that have been recommended by a health professional to treat or prevent a specific condition.
Can you use HSA at Costco? ›
Does Costco accept FSA or HSA cards online or in-store? No, currently in 2022 Costco does not accept FSA or HSA cards online or in-store.
Are vitamins FSA eligible? ›Vitamins or nutritional supplements (herbal or natural medicines) will not qualify as FSA-eligible if used to maintain general good health. In narrow circ*mstances vitamins recommended by a medical practitioner to treat a medical condition may be eligible with a Letter of Medical Necessity (LMN).
Can I contribute to an FSA after age 65? ›After retirement, you are no longer eligible to make contributions to an HSA. Health FSA—grace period. Coverage during a grace period by a general purpose health FSA is allowed if the balance in the health FSA at the end of its prior year plan is zero. See Flexible Spending Arrangements (FSAs), later.
Can both spouses have an FSA 2023? ›Healthcare FSAs Are Individual Accounts
There is not a family contribution option. Both you and your spouse can each have your own Healthcare FSA through your respective employers and both contribute the maximum amount to each account.
Once you hit 65, you can use your HSA to pay for any nonqualified medical expenses (including buying a boat, for example), but you don't get to take full advantage of the tax savings as you will be required to pay state and federal taxes on those distributions.
Can I close my HSA account after age 65? ›At age 65, you can withdraw your HSA funds for non-qualified expenses at any time although they are subject to regular income tax. You can avoid paying taxes by continuing to use the funds for qualified medical expenses.
Can HSA be used for insurance premiums before age 65? ›If you pay for your medical expenses out of pocket now, you'll have more saved in your HSA account to help pay for medical expenses once you retire. If you retire before age 65 and you aren't yet eligible for Medicare, you can use money in your HSA to pay your medical coverage premiums.
When can I start using 2023 FSA? ›Your 2023 FSAs can only be used to reimburse eligible expenses for care provided from the effective date of your enrollment through March 15, 2024. Different rules apply to Health Care and Dependent Care eligible expenses if your participa- tion in the plan ends before December 31, 2024.
Can I change my FSA contribution during the year 2023? ›IRS Regulations require that FSA elections for the new plan year must be made no later than the last day of the prior plan year and are irrevocable unless the employee experiences a permitted election change.
Is toothpaste FSA eligible? ›Toothpaste is not eligible for reimbursem*nt with a flexible spending account (FSA), health savings account (HSA), health reimbursem*nt arrangement (HRA), limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA). What is toothpaste?
Why HSA is the best retirement account? ›
Saving in an HSA for retirement gives you a tax-advantaged account dedicated to future medical expenses — allowing you the opportunity to avoid dipping into retirement accounts intended for cost-of-living expenses. Also, HSAs are a great way to pay for qualified medical expenses in retirement.
Is it worth it to maximize HSA? ›A health savings account (HSA) is an account specifically designed for paying health care costs. The tax benefits are so good that some financial planners advise maxing out your HSA before you contribute to an IRA.
Why is an HSA the best retirement? ›Benefits of Using an HSA for Retirement Investing
You pay zero in taxes on any interest and dividends you earn. And you can make withdrawals tax-free, so long as you use the funds for qualified medical expenses. Those on Medicare can't contribute to an HSA but can use previous savings for the same costs.
HSAs also have significant tax advantages for the employers who offer them. Employers don't have to pay federal income tax, social security, or medicare taxes (commonly known as FICA taxes) on any pre-tax contributions (from the employer or the employee).
Why is HSA better than PPO? ›Because HSAs must be paired with a high-deductible health plan, your health insurance premiums are normally much lower than a typical PPO plan with a $500 or $1,000 deductible. The savings from the lower premiums along with the tax-free deductions could be $5,000 or more every year.
How to build wealth with an HSA? ›You can put your HSA money into more than just a low-return savings account. You can invest in stocks, bonds, mutual funds and ETFs, for example. Putting your money into investments with the potential for higher returns can offer you a great long-term savings and retirement strategy.
What is a good HSA investment fee? ›The average fee for all funds available to HealthEquity members is: 0.09% or 9 basis points annually. Asset-based fee that covers investment administration roles and responsibilities. HealthEquity charges 0.03% per month on the average daily invested balance (0.36% per year) with a $10.00 monthly fee cap.
Can I keep my HSA if I cancel insurance? ›You own your account, so you keep your HSA, even if you change health plans or leave Federal Government. However, if your HSA was fully funded and you leave the HDHP during the year, then you will have to withdraw some of the contribution from the account.
Should I close my empty HSA? ›But that does not mean you should close your HSA!
But if it's not an earth-shattering emergency, you're probably better off keeping your HSA. If you close your HSA and withdraw all the money, you're going to have to pay income tax on the withdrawal, plus a 20% additional tax if you're under age 65.
There is no minimum account balance required to open a health savings account or to obtain the annual percentage yield disclosed. We use the daily balance method to calculate the interest on your account. The daily balance method applies a daily periodic rate to the principal in the account each day.
Can I transfer money from my HSA to my bank account? ›
Online Transfers – On HSA Bank's member website, you can reimburse yourself for out-of-pocket expenses by making a one-time or reoccurring online transfer from your HSA to your personal checking or savings account.
What is covered by FSA 2023? ›Your 2023 FSAs can only be used to reimburse eligible expenses for care provided from the effective date of your enrollment through March 15, 2024. Different rules apply to Health Care and Dependent Care eligible expenses if your participa- tion in the plan ends before December 31, 2024.
What are the out-of-pocket limits for 2023 for non HSA plans? ›For the 2023 plan year: The out-of-pocket limit for a Marketplace plan can't be more than $9,100 for an individual and $18,200 for a family. For the 2022 plan year: The out-of-pocket limit for a Marketplace plan can't be more than $8,700 for an individual and $17,400 for a family.
What is the HSA max for 2024? ›| 2022 | 2024 | |
|---|---|---|
| Individual Coverage | $3,650 | $4,150 |
| Family Coverage | $7,300 | $8,300 |
Future Year Option
The second way to avoid the HSA excess contributions penalty is through the “future year method.” It involves deducting some or all of your HSA excess contributions and applying them to a future year. The IRS does not allow you to apply more than you have in excess.
The IRS has increased the Flexible Spending Account (FSA) contribution limits for the Health Care Flexible Spending Account (HCFSA) and the Limited Expense Health Care FSA (LEX HCFSA). For 2023, participants may contribute up to an annual maximum of $3,050 for a HCFSA or LEX HCFSA.
How much can you carryover into 2023 FSA? ›Max out your contributions if you can
The more you can contribute, the more you can benefit from the HSA's potential triple tax advantages1. Keep in mind: you don't lose any unspent funds at the end of the year. Your HSA can be used now, next year or even when you're retired.
You can still own an HSA when you're not HSA-eligible. And you can still withdraw money from that HSA, tax-free as long as the money is used to pay for qualified medical expenses.
Can out-of-pocket be too high for HSA? ›To qualify for an HSA, the out-of-pocket max for your health insurance must be $7,500 or less for individuals, and $15,000 or less for families. It's not uncommon to find a high-deductible plan with a larger out-of-pocket max, but that will make you ineligible for an HSA.
What is the IRS limit for 2023? ›
For 2023, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than: $6,500 ($7,500 if you're age 50 or older), or. If less, your taxable compensation for the year.
How much can a 55 year old put in HSA? ›As in prior years, HSA account owners aged 55 and older may contribute an additional $1,000 over the standard annual limit. For 2023, that means account owners with individual coverage may contribute $4,850, whereas those with family coverage may contribute $8,750.
How much can you put in HSA after 65? ›If you are not enrolled in Medicare and are otherwise HSA eligible, you can continue to contribute to an HSA after age 65. You are also allowed to contribute the $1,000 catch-up. If you signed up for Medicare Part A and now want to decline it, you can do so by contacting the Social Security Administration.
When should I stop investing in my HSA? ›If you work beyond age 65 and defer Medicare, however, you will need to stop contributing to your HSA six months prior to receiving Social Security. Once you begin drawing Social Security after your full retirement age, you are required to have Medicare coverage and can no longer contribute to an HSA.
What is the 12 month rule for HSA? ›For the last-month rule, the testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month (for example, December 1, 2021, through December 31, 2022).
What happens to unused HSA funds at end of year? ›No. HSA money is yours to keep. Unlike a flexible spending account (FSA), unused money in your HSA isn't forfeited at the end of the year; it continues to grow, tax-deferred.