Contributing the maximum to your HSA each year could help you build up your nest egg so you're prepared for expected, and unexpected, health care costs. Not only will you get the most tax benefits by maxing out your contributions, but having a fully funded HSA will prepare you for the year ahead. Take charge of your medical expenses and fund your account today.
Did you know? Your HSA goes wherever you go
Even if you retire, change jobs or change health plans, your health savings account (HSA) — and all the available funds in it — are still yours. And because your funds roll over from year to year, you can feel a little more comfortable knowing that when qualified medical expenses come up, you can be covered … for as long as you have your account and keep it funded.
Did you know? Your HSA can play an important role in your long-term saving strategy
It's important to fund your HSA now, because once you enroll in Medicare, you can no longer contribute to your HSA — but you can still use your HSA funds income tax-free to pay for qualified medical expenses. You can also use your HSA to pay for Medicare premiums and qualified out-of-pocket expenses including deductibles, copays and coinsurance for:
- Part A (hospital and inpatient care)
- Part B (doctor and outpatient care)
- Part D (prescription drugs)
Plus after turning 65, you can use your HSA funds for non-qualified expenses, like a new convertible or a trip to Spain, with no penalty. You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies.* Funding the maximum each year can help you prepare for retirement, whether it's for qualified medical expenses or non-qualified expenses after 65.
Investing HSA dollars has many potential tax benefits and can be an additional way to save for long-term health care expenses and financial goals. Once your HSA reaches a certain designated balance, typically $2,000, you may choose to invest a portion of your HSA dollars. In addition to mutual funds, Optum Bank is now offering a new investment option: digitally managed investments with Betterment. Click here to learn more about investing.
Your money. Your HSA. Your flexible retirement solution.
Go beyond deductibles and copays
Even if you are young and healthy, funding your account now can help pay for everyday qualified medical expenses — such as acupuncture, chiropractic care and more.
Save for your family's future
Fund your account to help pay for qualified medical expenses you know might come up, like dental braces, or costs that might catch you by surprise, like an ER trip.
Save more for retirement
At age 55, eligible individuals can contribute an additional $1,000 each year to their HSA, called a catch-up contribution.
For a $100 pair of eyeglasses, you could pay $100 out of pocket, or you could pay $70 with your HSA, which is tax-free money. That's a savings of $30.OR
Feel like you're overpaying for health care?
Funding your HSA today could help you pay less for necessities tomorrow. It's the closest thing to a coupon for qualified medical expenses. Your tax savings can add up to 30% off the things you already need: copays, deductibles, vision, dental and more.** Say "yes" to a bigger balance today so you can avoid overpaying tomorrow.
Know the limit to go the limit
2021 is here. Start the new year off right by maxing out your HSA contributions.
2021 HSA contribution limits:
- $3,600 for individual coverage
- $7,200 for family coverage
2020 HSA contribution limits:
- $3,550 for individual coverage
- $7,100 for family coverage
The IRS sets guidelines for how much you can contribute to an HSA each year. You have until the tax filing deadline (typically April 15th) to make contributions to your HSA for the previous year. This means that for the 2020 tax season, you can contribute up to the annual maximum contribution limit until April 15, 2021.
*You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies.
**Assuming a 25% tax bracket and 5% state tax rate in a tax-exempt HSA state. Results and amounts will vary depending on your particular circumstances.