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Health Savings Accounts (HSA)

What is a Health Savings Account (HSA)?

An HSA is a special tax-advantaged savings account similar to a traditional individual retirement account (IRA) but designated for health care expenses (medical, dental, and vision).

It allows you to pay for current eligible health care expenses and to save for future qualified medical expenses on a tax-favored basis.

With an HSA, contributions, earnings on investments, and qualified distributions are all exempt from FICA, federal, and state income tax.

HSA dollars roll over from year to year, they stay with you even if you terminate employment, and there is no lifetime limit on the amount you can contribute to the account.

HSAs are a convenient and easy way to save and invest for future medical expenses such as long-term care premiums for you or your spouse, Medicare premiums, and COBRA premiums.

Who is eligible for a HSA?

Anyone covered solely by an HSA-qualified high deductible health insurance plan

You cannot enroll in an HSA if:

You are enrolled in Medicare

You are another person’s dependent

You are covered by a non-HSA health plan

How much can I contribute to my HSA?

The contribution limit on HSAs is based on the number of people covered by your HSA-qualified health plan.

Single coverage (1 covered individual): $4,150.00

Family coverage (2 or more covered individuals): $8,300

All HSA-eligible participants that are age 55 or older can also contribute an additional $1,000 per calendar year.

I am turning 65 this year and will be going on Medicare. How much can I contribute?

Enrollment in Medicare disqualifies you from being eligible to contribute to a Health Savings Account (HSA).

For the months of the year that you are not enrolled in Medicare, you can contribute a “pro-rated” amount to your HSA.

Example: You have single coverage on your health plan and are 64 years old.

  • Medicare enrollment is effective June 1st.
  • HSA contributions can be made for January through May (5 months).
  • Annual limit for single coverage at 64 years old is $4,650
  • $4,500 limit / 12 months in a year = $387.50 per month
  • $375 per month * 5 months of eligibility = $1,937.50

Helpful Links

From the Department of the Treasury Internal Revenue Service

Helpful Videos

Defined Contribution

Why Choose an HSA?

2023 Health Savings Account HSA OE Video:

If you have any specific questions about how an HSA can benefit you or what types of expenses are qualified under HSA, contact us!

We would love to help you!

Our Email: Info@consolidatedadmin.com

If you’re an employer or agent please contact: sales@consolidatedadmin.com

Call us between 8:00am and 5:00pm Monday through Friday: +1 (877) 941-5956



Example of Your Benefits Card:

Example of Your Benefits Card
Example of Savings with HSA