Understanding Health Savings Account-eligible plans
How Health Savings Account-eligible plans work
A
lets you set aside money that lowers your taxable income and pay for:
- Qualified medical expenses (includes some dental, drug, and vision expenses). Find an expenses list on IRS.gov.
To save money on health care costs through a Health Savings Account, you must enroll in a plan that is specifically eligible to be used with a Health Savings Account, like any Bronze or Catastrophic plan or another Marketplace plan that’s designated as eligible for a Health Savings Account.
Health Savings Account-eligible plans:
- May have lower monthly premiums
- Often have higher deductibles
- Are available in many areas and may be offered by your employer
- May provide certain preventive care benefits without a deductible or with a deductible less than the minimum annual deductible
Find Marketplace Health Savings Account-eligible plans. You can filter by "Eligible for an HSA."
Tax benefits and limitations:
- The amount you put into a Health Savings Account isn’t counted in your taxable income.
- Your balance rolls over year to year, so you can build up the amount in your Health Savings Account to pay for health care items and services you need later.
- Health Savings Accounts may earn interest that can’t be taxed.
- You generally can’t use Health Savings Account funds to pay premiums.
- Once you turn 65, you can use the money in your Health Savings Account for anything you want. If you don’t use it for qualified medical expenses, it counts as income when you file your taxes.
- Six months before you retire or get Medicare benefits, you must stop contributing to your Health Savings Account. But, you can use money left in your Health Savings Account to help pay for certain medical expenses that Medicare doesn’t cover.