HSA Savers

How do I save money in my Health Savings Account (HSA)?

This HSA Saver section assists consumers with the financial aspects of the Health Savings Accounts. Remember, when you own a Health Savings Account (HSA), you own two components:

  1. HDHP: A qualified high deductible health insurance plan (HDHP) from an insurance company (required / pre-requisite).
  2. HSA: A tax qualified HSA Health Savings Account at any approved financial custodian (not required).

HSAconsumer.com focuses on the HSA Health Savings Account. We teach you how to SAVE smarter with tax deductible contributions into your HSA, and show you how to GROW your Health Savings Account balance by leveraging the advantages of tax deferred growth.

Essentially, there are two types of HSA owners:

1. HSA SPENDERS: HSA owners that need to spend their Health Savings Account money each year due to health reasons or financial limitations. Choosing the right bank and keeping an eye on monthly fees are important to these savers.

2. HSA SAVERS:  HSA owners that don’t spend their money due to their fortunate good health or financial position. Choosing the right investment and tax strategy is important to these savers.

Utilize the following sections of the website for a more detailed HSA education on:

INFO: Health Savings Account money can be treated like IRA distributions for tax purposes after age 65. Meaning, for NON eligible expenses, you will have to pay income taxes on the withdrawal, but you avoid the 20% penalty. So, save as much as you can, you will use it at some point over your lifetime.

TIP: Be sure to open a health savings account AFTER your insurance plan becomes effective, and BEFORE any eligible medical expenses occur. Only expenses after the account has been established are eligible for tax free treatment.
TIP: You are allowed to reimburse yourself tax free at the end of the year, or anytime in the future, for any receipts you may have collected for eligible medical/dental expenses.
TIP: Keep all receipts for insurance company purposes to put towards your deductible, and for purposes of the IRS in case you are audited.
WARNING: If you spend your money on NON-medical, dental or vision expenses, you will have income taxes due, regardless of your age, and pay a 20% penalty if you are under age 65. (The penalty increased in 2011 from 10% due to the new health reform law)


HSA Consumer is NOT a Tax or Investment Adviser, please consult with your CPA, Financial Adviser or Insurance Agent on your specific situation.