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A Tax-Smart Way to Save for Health Care: Health Savings Accounts

A Tax-Smart Way to Save for Health Care: Health Savings Accounts

August 02, 2022

Health care can be an expensive part of life’s journey, but with the right approach, you can minimize the impact and better prepare for the future. One powerful planning tool is a Health Saving Account (HSA) which lets you save and invest money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars to cover deductibles, copayments, coinsurance and other qualified expenses, you can significantly reduce the cost. Benefits include:

Triple Tax Advantage*

  • Contributions are not subject to federal income tax.
  • Investment earnings grow tax-free.
  • Withdrawals are not taxed when used for qualified medical expenses.

Flexibility and Choice

  • If you move, change employers, or change health plans, your HSA stays with you.
  • Unused balances are rolled over each year and the balance is eligible for an array of investment options.
  • There is no minimum amount required to open an HSA.


You can open and contribute to an HSA if you are:

  • Enrolled in an HSA-eligible plan
  • Not covered by Medicare or an ineligible health plan
  • Not claimed as a dependent on someone else’s tax return

HSA Contribution Limits for 2022  

Limits are adjusted annually for inflation and allow $3,650 for individuals and $7,300 for family plans in 2022. Employees aged 55 and older are also eligible for a catch-up contribution of an additional $1,000. 

How HSAs Work

Getting started couldn’t be easier. It’s as simple as funding an account and using it to offset expenses.

  1. Open the HSA account.
  2. Determine how much you want to contribute to cover anticipated deductibles, copays, and coinsurance.
  3. Use your HSA debit card to pay for qualified expenses.

Start planning for the future today. Contact us to talk about opening an HSA as just one solution to offset the cost of health care for you and your family.


* With respect to federal taxation only. Contributions, investment earnings, and distributions may or may not be subject to state taxation.