What is An HSA and Do I Need One?

  • Account designed for medical expenses
  • Triple tax benefit
    • Tax-deductible
    • Grows tax-deferred
    • Withdrawals are tax-free for medical expenses
  • Need to use an HSA-approved high deductible health plan (HDHP)
  • You can own an HSA any time but you can only contribute while you meet the requirements
  • Annual limits: $3,550 single / $7,100 family maximum (2020) w/ $1,000 catch-up after age 55
  • Can be used after age 65 for anything (not just medical expenses)
    • Still tax-free for medical expenses
    • Taxed at current tax rate for non-medical expenses
  • Funds roll over and belong to you forever
  • After your death, any funds remaining in your HSA are payable to the beneficiary you named on the account
  • Funds can be invested, just like an IRA or 401(k)

Intro/outtro music credit: eccentric - I Can Show You [Argofox Release] by Argofox