WHAT IS A HEALTH SAVINGS ACCOUNT?

A Health Savings Account (HSA) is a tax-advantaged health care account that you own. You contribute to it with tax-free or tax-deductible funds. You can use those funds to pay for eligible health care expenses now and in the future. This includes expenses for you, your spouse and your tax dependents. This is true even if your spouse and dependents are not on your health plan. To contribute to an HSA you must have a qualified High Deductible Health Plan (HDHP).

Each year, the IRS sets the maximum amount you can contribute to the HSA.  Below are the limits for 2026:

Individual	$4,400
Individual (55 and over)	$5,400
Family	$8,750
Family (55 and over)	$9,750

The funds that you contribute but don’t use will roll over year to year. In addition, an HSA is portable. This means that if you change employers or leave the work force, the HSA stays with you. Finally, with an HSA you don’t have to submit documentation for the funds you use. However, you should keep all your receipts and statements in the event of an IRS audit. These will show that you used the funds for eligible expenses.

For more information, check out some frequently asked questions. Current HSA subscribers can find more information about using Wealthcare Saver, Truman’s HSA provider, here.

Employees with an HSA who are nearing Medicare eligibility should review additional information here.