Building an HSA will give you control over how you save, invest and manage your health care dollars
You save money on taxes
You don’t pay federal taxes on HSA dollars that you put into your account, and most states also exempt these funds from taxes (except CA and NJ). Your employer can also put funds into your account before tax.
You own the account and contributions
The money you or your employer contribute to the HSA is yours to keep and use for health expenses, even if you change jobs.
Savings add up, year-over-year
Your account balance rolls over each year and remains available for qualified medical expenses, even if you change health plans, retire or change jobs. You do not give up unused funds in your account at the end of the year.
Invest extra money and earn interest
For most HSAs, you may have the option of investing additional funds once your account reaches a certain balance.
The money you save in an HSA can be used to cover eligible IRS-approved expenses like:
- Diabetic supplies
- Eye exams, eyeglasses, contact lenses and solution and laser surgery
- Hearing aids
- Orthodontia, dental cleanings, and filling
- Prescription drugs (over-the-counter medicines only if bought with a prescription)
- Physical therapy, speech therapy and chiropractic expenses
- Medicare premiums (after age 65)