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Health Savings Account

what are health savings accounts?

You may have heard about Health Savings Accounts (HSAs) in the news as a new way for individuals to pay for health care costs. 

HSAs are individual accounts that allow you to use pre-tax dollars to pay for future medical expenses. You can deduct contributions to your HSA and the account earnings will accumulate on a tax-deferred basis. 

Distributions from your HSA are tax-free if they are used for qualified medical expenses. HSAs are designed specifically for individuals who have chosen a high-deductible health plan (HDHP).

how much can i contribute?

Individuals or an employer may make contributions to a Health Savings Account. If you participate in a Health Savings Account, you may not participate in a flexible spending account held by you or a spouse or any other Health Savings plan. Your contributions are also limited by the regulations established annually by the IRS.

2026 health savings account contribution limits

  • Individuals - $4,400
  • Families - $8,750


Taxpayers age 55 or older are entitled to an additional catch-up contribution of $1,000.

what are qualified medical expenses?

Prescription drugs, qualified long term care service, qualified long term care insurance, COBRA coverage, Medicare expenses and any retiree health expense for individuals age 65 and older.

benefits of a health savings account

  • No Minimum Balance
  • No Monthly Service Charge
  • No Per Check Charge
  • Earns Dividends*
  • Direct Deposit/Payroll Deduction
  • 24 Hour Access via Service 1st online


To learn more about HSA’s, call one of our HSA specialists at 800.562.6049 or visit www.treasury.gov/resource-center/faqs/Taxes/Pages/Health-Savings-Accounts.aspx.

*The Annual Percentage Yield is a percentage that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. Fees could reduce earnings on account.

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