Open an HSA
——
An HSA is like no other savings account.
Have a high-deductible health plan? A health savings account (HSA) is designed to help you save and pay for qualified medical expenses. The money goes in tax-free, grows income tax-free and comes out income tax-free when you use it for qualified medical expenses.
Benefits of opening an HSA
Life has its surprises but with an Optum Bank HSA, paying for qualified medical expenses won't be one of them. Learn more about the benefits of an HSA.
Save money and save on taxes? Yes, please.
Keep Uncle Sam out of your pocketbook. The money you contribute to your HSA goes in, grows and comes out income-tax free when used for qualified medical expenses. You know you're going to need it — so why not save on taxes, too?
There is no "use it or lose it" rule
You get to keep the money in your HSA, no matter what, even if you change jobs or move off a qualifying high-deductible health plan. When you, your employer or anyone else makes a contribution to your HSA, it stays there so you can use it when you need it. Plus, any money you keep in your account may earn interest and once your HSA reaches a certain designated balance, you may choose to invest a portion of your HSA dollars in mutual funds to grow you balance.
It's a family affair
You can use your HSA to pay for the qualified medical expenses of anyone you claim on your taxes, even if you're only enrolled with single coverage. This is a great way to plan for unexpected medical expenses, from your deductible to an ER visit, for the whole family.
Invest your HSA dollars
In addition to contributing to your 401(k) you can also invest your HSA dollars to help grow your balance. Unlike a 401(k) when you use HSA funds for qualified medical expenses — it’s always 100% income tax-free. Learn more about our investment options.
You may not be ready to retire, but chances are you’re already planning for it.
An HSA is a great tool to help you prepare for future health care costs and retirement. After turning 65 you can use your HSA funds for non-qualified expenses, like a boat or an exotic vacation. You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies. As you're planning for the future, your HSA can ease your mind and prepare you for retirement by saving money income tax-free.
Qualifying for an HSA
Optum Bank HSAs are FDIC insured bank accounts that you can use to pay for qualified health expenses for yourself and your covered dependents tax free. To be an eligible individual and qualify for an HSA, you must meet the following requirements, as defined by the IRS:
You cannot be claimed as a dependent on someone else's tax return.
You must be covered under a high deductible health plan (HDHP) on the first day of the month.
You are not enrolled in Medicare or other health coverage except what is permitted by the IRS.
Other restrictions and exceptions may also apply.
- You are not enrolled in Medicare, TRICARE or TRICARE for Life.
- You haven’t received Veterans Affairs (VA) benefits within the past three months, except for preventive care. If you have a disability rating from the VA, this exclusion doesn’t apply.
- You do not have a health care flexible spending account (FSA) or health reimbursement account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.
We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances.
What’s a high-deductible health plan?
The IRS defines a qualifying high-deductible health plan as having:
2024:
- A minimum annual deductible of $1,600 individual / $3,200 family and an out-of-pocket maximum of $8,050 individual / $16,100 family
An individual with individual coverage can contribute up to $4,150 to their HSA. An individual with family coverage can contribute up to $8,300 to their HSA.
2025:
- A minimum annual deductible of $1,650 individual / $3,300 family and an out-of-pocket maximum of $8,300 individual / $16,600 family
An individual with individual coverage can contribute up to $4,300 to their HSA. An individual with family coverage can contribute up to $8,550 to their HSA.
Once you turn 55, you can contribute an additional $1,000 each year to your HSA, called a catch-up contribution. If you and your spouse are both over the age of 55, you can each contribute an additional $1,000. Your spouse will just need to open their own HSA for their additional portion.
Coverage of adult children
Health care reform legislation passed in 2010 allows adult children up to age 26 to be covered by parents’ health plans, including high-deductible plans.
The tax laws regarding HSAs have not changed, however an adult child must still be considered a tax dependent in order for his or her medical expenses to qualify for payment or reimbursement from a parent’s HSA.
If you are under age 26 and covered by a parent’s HSA-eligible, high-deductible health plan, you may be able to open and fund an HSA yourself and can contribute up to the IRS family maximum. The criteria above still apply. Consult a knowledgeable benefits consultant or tax advisor.
