HSA Guide
HSA LIKE A PRO
Stretch your dollars further and put more money in your pocket. Health Savings Accounts empower you to save more, spend smarter and invest in your healthcare.
What is a Health Savings Account?
HSAs are tax-advantaged member-owned accounts that let you save pre-tax1 dollars for future qualified medical expenses. You can invest2 in mutual funds tax-free—and funds never expire.
Why choose us?
24/7 US-based member services
Award-winning mobile app3
Easy account management
Smart alerts and notifications
Am I eligible for a health savings account?
HSAs are available exclusively to those with a qualifying health plan.
You are eligible if you have a High-deductible health plan
You are not eligible if you have Healthcare coverage beyond qualified health plans (including Medicare enrollment)
You are not eligible if you are Being claimed as a dependent on someone’s tax returns
You are not eligible if you are Receiving Veterans Affairs benefits within the past three months
How do I sign up?
You can enroll in an HSA-qualified health plan and sign up for an account during your organization’s annual open enrollment. If you have a high-deductible health plan on your own—not offered through an employer—you can sign up right now.
Open an individual account
Save
Put more money in your pocket
FSA vs. HSA
Traditional health plan | HSA-qualified health plan |
Higher premiums | Lower premiums |
Lower deductibles | Higher deductibles |
Doesn’t cover premium payments | Cover premium payments |
Funds expire | Funds don’t expire |
Roll Over funds
Unlike Flexible Spending Accounts (FSA), you own your HSA. That means your entire balance rolls over every year—even if you change health plans, retire, or leave your employer.
Compare healthcare accounts
Roll Over funds
Unlike Flexible Spending Accounts (FSA), you own your HSA. That means your entire balance rolls over every year—even if you change health plans, retire, or leave your employer.
FSA vs. HSA
Traditional health plan | HSA-qualified health plan |
Higher premiums | Lower premiums |
Lower deductibles | Higher deductibles |
Doesn’t cover premium payments | Cover premium payments |
Funds expire | Funds don’t expire |
Compare healthcare accounts
The more you contribute, the more you save
Each contribution potentially reduces your annual tax bill.1 Link a bank account and make tax-deductible contributions anytime.
HSA Annual Contribution Limits
2022 | $3,650 | $7,300 |
2023 | $3,850 | $7,750 |
At age 55, members can contribute an additional $1,000 beyond IRS limits. |
HSA Annual Contribution Limits
2022 | $3,650 |
2023 | $3,850 |
2022 | $7,300 |
2023 | $7,750 |
At age 55, members can contribute an additional $1,000 beyond IRS limits.
View all HSA limits and guidelines
Spend
Stretch your dollars further
HSA Qualified Medical Expenses
Because of the tax savings on contributions, you can save an average of 30%4 on qualified medical expenses, including but not limited to:
Acne Medicine
Braces
Crutches
Denturist
EyeglassesRx
Eye Surgery
Flu Shot
Hearing Aids
Motorized Wheelchair
PrescriptionsRx
X-Rays
Allergy Medicines
Contact LensesRx
Dental Cleanings
Doctor Fees
Eye Exams
Face Masks
Hand SanitizerLMN
Ibuprofen
Orthodontia
Sanitizing Wipes
Your savings can add up fast
Here’s an example based on $4,000 annual spending and a 30 percent effective tax rate.
Medical expenses
$3,000
+
Vision expenses
$500
+
Dental expenses
$500
Annual tax savings4$1,200
Become a savvy healthcare consumer
The HealthEquity debit card5 is a great way to pay at the pharmacy or doctor’s office. Just run it as a credit card—no PIN required.
Consider generics
Generic medications cost 20 to 70 percent less than branded medications.7
Prefer urgent care
Emergency room visits cost up to 5X more than urgent care.8 Unless it’s a life-threatening event, consider urgent care instead.
Comparison shop
Whether you need a simple procedure or even major surgery, be sure to get prices from several healthcare providers.
Consider generics
Generic medications cost 20 to 70 percent less than branded medications.7
Prefer urgent care
Emergency room visits cost up to 5X more than urgent care.8 Unless it’s a life-threatening event, consider urgent care instead.
Comparison shop
Whether you need a simple procedure or even major surgery, be sure to get prices from several healthcare providers.
Invest
Build long-term health savings
Your retirement engine
Unlike other account types, an HSA lets you invest money to build the ultimate retirement nest egg. To get you there, HealthEquity offers a powerful lineup of low-cost Vanguard mutual funds.9 Choose from index funds or target date funds.
Invest your money just like a 401(k) | |
Access liquid funds anytime | |
Enjoy lower fees and transparent pricing | |
Take advantage of powerful advisory tools offered by HealthEquity Advisors, LLC6 |
401(k) vs. HSA
| 401(k) | HSA |
FICA taxed contributions | 100% tax-deductible contributions |
Tax-free earnings | Tax-free earnings |
Medical expenses taxes as ordinary income | Tax-free distribution for medical expenses |
Regular expenses taxed as ordinary income | Regular expenses taxed as ordinary income |
Minimum distributions requried | No required minimum distributions |
HSA vs. 401(K)
Both accounts let you make pre-tax contributions and grow tax-free earnings. But only an HSA lets you take tax-free distributions for qualified medical expenses. After age 65 you can use your health savings account for any expense, you’ll simply pay ordinary income taxes—just like a 401(k).
HSA vs. 401(K)
Both accounts let you make pre-tax contributions and grow tax-free earnings. But only an HSA lets you take tax-free distributions for qualified medical expenses. After age 65 you can use your health savings account for any expense, you’ll simply pay ordinary income taxes—just like a 401(k).
401(k) vs. HSA
| 401(k) | HSA |
FICA taxed contributions | 100% tax-deductible contributions |
Tax-free earnings | Tax-free earnings |
Medical expenses taxes as ordinary income | Tax-free distribution for medical expenses |
Regular expenses taxed as ordinary income | Regular expenses taxed as ordinary income |
Minimum distributions requried | No required minimum distributions |
Accelerate your health savings
Take the guesswork out of investing. Log into your account and a helpful step-by-step tutorial will walk you through the process. Choose from two powerful advisory tools brought to you by HealthEquity Advisors, LLC.
Start building health savings today
It’s never been easier to take control of your health and grow your money.
Make the Smart Choice in 2022
Check out our snackable 15-minute webinars. Each episode gives you simple tips and tricks to get the most from your benefits. Learn how to use an HSA, spend less on healthcare, and invest for the future.
Harness the Power of an HSA
Take control of your health and grow your money. In just 15 minutes you’ll discover how to use a Health Savings Account (HSA) to save on healthcare premiums and build long-term health savings.
12m
Future in focus: Investing your HSA for retirement savings
Your HSA is like a second 401(k). It’s a powerful investment tool. Join us to find out how to invest your HSA and build the ultimate retirement nest egg.
16m
HSA Your Way: Spend, Save and Invest in Your Healthcare
Choosing an HSA is only the first step. Join us to see the power of an HSA in action. We’ll share three strategies for how to spend less on healthcare and invest even more for the future.
11m
1HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.Return to content
2Investments are subject to risk, including the possible loss of the principal invested, and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. Investing through the HealthEquity investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement. Investing may not be suitable for everyone and before making any investments, review the fund’s prospectus.Return to content
3Accounts must be activated via the HealthEquity website in order to use the mobile app.Return to content
4The example used is for illustrative purposes only; actual savings may vary. The figure is based on average tax rates, including state, federal and FICA taxes.Return to content
5Your HealthEquity® Visa® Healthcare Card can be used at participating merchants who sell eligible healthcare products or services everywhere Visa debit cards are accepted. Your HealthEquity Visa Healthcare Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. The Bancorp Bank; Member FDIC. 6Investments are subject to risk, including the possible loss of the principal invested and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc.Return to content
6HealthEquity, Inc. does not provide investment advice. HealthEquity Advisors, LLC™, a wholly owned subsidiary of HealthEquity, Inc. and an SEC-registered investment adviser, provides web-based investment advice to HSA holders that subscribe for its services (minimum thresholds and additional fees apply). Registration does not imply endorsement by any state or agency and does not imply a level of skill, education, or training. Investing may not be suitable for everyone and before making any investments, review the fund’s prospectus. HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.Return to content
7Federal Trade Commission, 2020: Consumer.ftc.gov/articles/0063-generic-drugs-and-low-cost-prescriptions Return to content
8Debt.Org, 2020: Debt.org/medical/emergency-room-urgent-care-costs/Return to content
9You should carefully consider the investment objectives, risks, charges and expenses of any mutual fund before investing. A prospectus and, if available, a summary prospectus containing this and other important information can be obtained by visiting the Vanguard website at vanguard.com. Please read the prospectus carefully before investing.Return to content
HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.