HSA Guide
HSA like a pro
Stretch your dollars further and put more money in your pocket. Health Savings Accounts empower you to save more, spend smarter and invest in your healthcare.
What is a Health Savings Account?
HSAs are tax-advantaged member-owned accounts that let you save pre-tax1 dollars for future qualified medical expenses. You can invest2 your account—and funds never expire.
Tap into health savings.
Faster access, stronger security, and more convenient than logging in online. HSAs use the HealthEquity mobile app.
HealthEquity Mobile app
4.5 stars 2Tap into health savings.
Already enrolled? Set up your new account directly in the app—no need to register online.
EZ Receipts Mobile app
4.7 stars 3Bring your benefits with you.
Already enrolled? Please set up your account online before using the app.
Am I eligible for a Health Savings Account?
To open and contribute to an HSA, you must be enrolled in an HSA-qualified high-deductible health plan (HDHP). You cannot be covered by other non-HDHP health insurance, enrolled in Medicare, or claimed as a dependent.
Understanding high-deductible health plansHow do I sign up?
You can enroll in an HSA-qualified health plan and sign up for an account as a new employee and during your organization's annual open enrollment.
Open an individual accountSave
Put more money in your pocket
Enjoy lower health plan premiums
Qualified health plans offer lower premiums, enabling you save potentially thousands every year.
Understanding high-deductible health plans →Keep your premium savings
Just put the extra money you would've paid toward traditional premiums into your account. Voila! Long-term savings.
Check out our contribution calculator →Take advantage of triple-tax savings1
See how much you could save next year →- Make pre-tax payroll contributions
- Grow tax-free earnings
- Enjoy tax-free distributions for qualified medical expenses
Roll over funds
Unlike Flexible Spending Accounts (FSA), you own your HSA. That means your entire balance rolls over every year—even if you change health plans, retire, or leave your employer.
HSA vs FSA comparison →| FSA | HSA |
|---|---|
| Traditional health plan | HSA-qualified health plan |
| Higher premiums | Lower premiums |
| Lower deductibles | Higher deductibles |
| Doesn't cover premium payments | Cover premium payments |
| Funds expire | Funds don't expire |
The more you contribute, the more you save
Each contribution potentially reduces your annual tax bill.1 Link a bank account and make tax-deductible contributions anytime.
View all HSA limits and guidelines →HSA Annual Contribution Limits
| Tax year | Individual coverage limit | Family coverage limit |
|---|---|---|
| 2026 | $4,400 | $8,750 |
| 2027 | $4,500 | $9,000 |
At age 55, members can contribute an additional $1,000 beyond IRS limits.
Spend
Stretch your dollars further
HSA qualified medical expenses
Because of the tax savings on contributions, you can save an average of 30 percent4 on qualified medical expenses, including but not limited to:
- Acne Medicine
- Braces
- Crutches
- Denturist
- EyeglassesRx
- Eye Surgery
- Flu Shot
- Hearing Aids
- Motorized Wheelchair
- PrescriptionsRx
- X-Rays
- Allergy Medicines
- Contact LensesRx
- Dental Cleanings
- Doctor Fees
- Eye Exams
- Face Masks
- Hand SanitizerLMN
- Ibuprofen
- Orthodontia
- Sanitizing Wipes
Ready to shop? Visit the HSA store
You can purchase HSA-eligible items online directly through the HSA store. Browse prescriptions, hearing aids, contact lenses and more.
Browse the HSA Store nowYour savings can add up fast
Here's an example based on $4,000 annual spending and a 30 percent effective tax rate.
Medical expenses
$3,000
Vision expenses
$500
Dental expenses
$500
Annual tax savings4
$1,200
Become a savvy healthcare consumer
The HealthEquity debit card5 is a great way to pay at the pharmacy or doctor's office. Just run it as a credit card—no PIN required.
Consider generics
Generic medications cost 20 to 70 percent less than branded medications.7
Prefer urgent care
Emergency room visits cost up to 5X more than urgent care.8 Unless it's a life-threatening event, consider urgent care instead.
Comparison shop
Whether you need a simple procedure or even major surgery, be sure to get prices from several healthcare providers.
Invest
Build long-term health savings
Your retirement engine
Unlike other account types, an HSA lets you invest money to build the ultimate retirement nest egg. To get you there, HealthEquity offers a powerful lineup of low-cost Vanguard mutual funds.9 Choose from index funds or target date funds.
HSA investing →- Invest your money just like a 401(k)
- Access liquid funds anytime
- Enjoy lower fees and transparent pricing
- Take advantage of powerful advisory tools offered by HealthEquity Advisors, LLC
HSA vs. 401(k)
Both accounts let you make pre-tax contributions and grow tax-free earnings. But only an HSA lets you take tax-free distributions for qualified medical expenses. After age 65 you can use your health savings account for any expense, you'll simply pay ordinary income taxes—just like a 401(k).
| 401(k) | HSA |
|---|---|
| FICA taxed contributions | 100% tax-deductible contributions |
| Tax-free earnings | Tax-free earnings |
| Medical expenses taxed as ordinary income | Tax-free distribution for medical expenses |
| Regular expenses taxed as ordinary income | Regular expenses taxed as ordinary income |
| Minimum distributions required | No required minimum distributions |
Accelerate your health savings
Take the guesswork out of investing. Log into your account and a helpful step-by-step tutorial will walk you through the process. Choose from two powerful advisory tools brought to you by HealthEquity Advisors, LLC.
AutoPilot
Let intelligent technologies manage your entire portfolio.
GPS
Tap into algorithm-based guidance and recommendations.
Start building health savings today
It's never been easier to take control of your health and grow your money.
Open an accountHave questions? Visit our help center.
Find helpful guides, answers to your questions, and access to our helpful Member Services Team.
Visit our Help Center →HSA Videos
How does an HSA work?
How to use your HSA
Articles
HSA webinars
Check out our snackable 15-minute webinars. Each episode gives you simple tips and tricks to get the most from your benefits. Learn how to use an HSA, spend less on healthcare, and invest for the future.
Ready to get started?
Open your HealthEquity HSA today and start taking advantage of triple tax savings.
Open New Account1HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state's specific rules.
2Investments are subject to risk, including the possible loss of the principal invested, and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. Investing through the HealthEquity investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement. Investing may not be suitable for everyone and before making any investments, review the fund's prospectus.
34.5 stars is the Apple App Store rating as of April 2025, with 11.8K ratings.
4The example used is for illustrative purposes only; actual savings may vary. The figure is based on average tax rates, including state, federal and FICA taxes.
5This card is issued by the Bancorp Bank, N.A. pursuant to a license from Visa U.S.A., Inc. Your card can be used everywhere Visa debit cards are accepted for qualified expenses. This card cannot be used at ATMs and you cannot get cash back, and cannot be used at gas stations, restaurants, or other establishments not health-related. For card terms and conditions, see the Cardholder Agreement that is provided with the card.
6HealthEquity, Inc. does not provide investment advice. HealthEquity Advisors, LLC™, a wholly owned subsidiary of HealthEquity, Inc. and an SEC-registered investment adviser, provides web-based investment advice to HSA holders that subscribe for its services (minimum thresholds and additional fees apply). Registration does not imply endorsement by any state or agency and does not imply a level of skill, education, or training. Investing may not be suitable for everyone and before making any investments, review the fund's prospectus. HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.
7Federal Trade Commission, 2020: Consumer.ftc.gov/articles/0063-generic-drugs-and-low-cost-prescriptions
8Debt.Org, 2020: Debt.org/medical/emergency-room-urgent-care-costs/
9You should carefully consider the investment objectives, risks, charges and expenses of any mutual fund before investing. A prospectus and, if available, a summary prospectus containing this and other important information can be obtained by visiting the Vanguard website at vanguard.com. Please read the prospectus carefully before investing.
HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.
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