Contributing the maximum to your HSA each year could help you build up your nest egg so you're prepared for expected, and unexpected, health care costs. Not only will you get the most tax benefits by maxing out your contributions, but having a fully funded HSA will prepare you for the year ahead. Take charge of your medical expenses and fund your account today.
Did you know? Your HSA goes wherever you go
Even if you retire, change jobs or change health plans, your health savings account (HSA) — and all the available funds in it — are still yours. And because your funds roll over from year to year, you can feel a little more comfortable knowing that when qualified medical expenses come up, you can be covered … for as long as you have your account and keep it funded.
Did you know? Your HSA can play an important role in your long-term saving strategy
It's important to fund your HSA now, because once you enroll in Medicare, you can no longer contribute to your HSA — but you can still use your HSA funds income tax-free to pay for qualified medical expenses. You can also use your HSA to pay for Medicare premiums and qualified out-of-pocket expenses including deductibles, copays and coinsurance for:
- Part A (hospital and inpatient care)
- Part B (doctor and outpatient care)
- Part D (prescription drugs)
Plus after turning 65, you can use your HSA funds for non-qualified expenses, like a new convertible or a trip to Spain, with no penalty. You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies.* Funding the maximum each year can help you prepare for retirement, whether it's for qualified medical expenses or non-qualified expenses after 65.
Investing HSA dollars has many potential tax benefits and can be an additional way to save for long-term health care expenses and financial goals. Once your HSA reaches a certain designated balance, typically $2,000, you may choose to invest a portion of your HSA dollars. In addition to mutual funds, Optum Bank is now offering a new investment option: digitally managed investments with Betterment. Click here to learn more about investing.
Your money. Your HSA. Your flexible retirement solution.
Go beyond deductibles and copays
Even if you are young and healthy, funding your account now can help pay for everyday qualified medical expenses — such as acupuncture, chiropractic care and more.
Save for your family's future
Fund your account to help pay for qualified medical expenses you know might come up, like dental braces, or costs that might catch you by surprise, like an ER trip.
Save more for retirement
At age 55, eligible individuals can contribute an additional $1,000 each year to their HSA, called a catch-up contribution.
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Feel like you're overpaying for health care?
Funding your HSA today could help you pay less for necessities tomorrow. It's the closest thing to a coupon for qualified medical expenses. Your tax savings can add up to 30% off the things you already need: copays, deductibles, vision, dental and more.** Say "yes" to a bigger balance today so you can avoid overpaying tomorrow.
Pay the easy way
Paying with your Optum Financial payment card is convenient way to pay for qualified medical expenses without having to submit paper claim forms. Use it at the pharmacy, pay at the doctor’s office or write your payment card number on your provider bill. Keep it handy as an easy way to use the funds you’ve put into your HSA account.
Know the limit to go the limit
Each year, the Internal Revenue Service (IRS) sets contribution limits for health savings accounts (HSAs).
Contributing the maximum to your HSA each year could help you build up your nest egg so you're prepared for expected, and unexpected, health care costs.
2024 HSA contribution limits:
An individual with coverage under a qualifying high-deductible health plan (deductible not less than $1,600) can contribute up to $4,150 — up $300 from 2023 — for the year. The maximum out-of-pocket is capped at $8,050.
An individual with family coverage under a qualifying high-deductible health plan (deductible not less than $3,200) can contribute up to $8,300 — up $550 from 2023 — for the year. The maximum out-of-pocket is capped at $16,100.
2025 HSA contribution limits:
An individual with coverage under a qualifying high-deductible health plan (deductible not less than $1,650) can contribute up to $4,300 — up $150 from 2024 — for the year. The maximum out-of-pocket is capped at $8,300.
An individual with family coverage under a qualifying high-deductible health plan (deductible not less than $3,300) can contribute up to $8,550 — up $250 from 2024 — for the year. The maximum out-of-pocket is capped at $16,600.
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. Click here to make a catch up contribution today.
You are responsible for monitoring the amount deposited into your HSA each calendar year. Keep in mind that if your employer contributes funds, those also count toward the maximum. If you exceed the maximum contribution limit, there is a penalty imposed by the IRS. Sign in to your account online to download the Excess Contribution and Deposit Correction Request Form to request an excess contribution refund or a correction to a contribution.
*You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies.
**Savings compares using pre-tax income in your HSA to using after tax income for purchases and assumes a 30% combined tax rate from all applicable federal, state, and FICA taxes. Results and amount will vary depending on your circumstances.
