Individual HSA

Man sitting at desk reading bookletIntroducing Health Savings Accounts

What is an HSA?

HSAs, or Health Savings Accounts, are a way for you to set aside money tax-free for your health expenses. There is no tax on money you put into your account or take out of your account, so long as you use the funds to pay for eligible health expenses. Qualified healthcare expenses can be diverse and comprehensive.

To learn more about what qualifies, go here.

You can also download this 2020 guide.

You can also invest your HSA to help it grow over time, also tax-free. Erisa offers investment choices that have been professionally selected. There’s also the option to set up a brokerage account.

Money you put into your HSA stays with you, even if you change jobs. And unlike an FSA, your HSA funds will rollover from year to year until you use them, and can be used to pay for medical expenses even in retirement.

HSAs are associated with High Deductible Health Plans (HDHP). You must have an HDHP through your employer, your spouse, or one you’ve purchased on your own that qualifies for an HSA. If so, you can open an HSA.

How do I know if I have a High Deductible Health Plan?

If your current insurance plan has a higher deductible than a traditional insurance plan, you probably have an High Deductible Health Plan (HDHP). The monthly premium is usually lower, but you pay more health care costs yourself before the insurance company starts to pay its share (your deductible). A HDHP can be combined with a health savings account (HSA), allowing you to pay for certain medical expenses with money free from federal taxes.

For 2020, the IRS defines a high deductible health plan as any plan with a deductible of at least $1,400 for an individual or $2,800 for a family. An HDHP’s total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) can’t be more than $6,900 for an individual or $13,800 for a family. (This limit doesn't apply to out-of-network services.)



Minimum Deductible

Self only: $1,400

Self only: $1,500

Family: $2,800

Family: $3,000

Maximum Deductible

Self only: $7,050

Self only: $7,500

Family: $14,100

Family: $15,000

What makes an HSA different?

An HSA can act like a retirement fund, much like an IRA, letting you put aside money for retirement instead of the “use-it-or-lose-it” option of the FSA. But it can also be used to pay for medical expenses when you need them, like an FSA or HRA, with no minimum limit or fees on your withdrawals.

What is the maximum contribution that can be made to an HSA?

The maximum annual contributions for 2020 and 2021 are:



Individual Limit



Family Limit



Catch-up Contribution



To learn more about the latest information regarding contribution limits, go here.

Ready To Enroll?

Looking for more information?

HSA:Start Here book cover

Erisa Trust prides itself on staying up to date with the latest information on Health Savings Accounts. Visit our Frequently Asked Questions or learn more from our latest book: HSA: Start Here.