A Health Savings Account (HSA) is a tax-advantaged savings account designed to help you pay for healthcare expenses. It offers valuable benefits now and in the future — from lowering your current healthcare costs to building long-term savings for retirement.
- Understand the Basics
- Triple Tax Advantage: HSAs provide three powerful tax benefits — contributions are tax-deductible, growth is tax-deferred, and withdrawals for qualified medical expenses (QMEs) are completely tax-free.
- Eligibility: To open or contribute to an HSA, you must be enrolled in a high-deductible health plan (HDHP). These plans typically have higher deductibles and out-of-pocket costs but lower monthly premiums, allowing you to save more overall.
2026 Contribution Limits:
- Self-only coverage: $4,400
- Family coverage: $8,750
- Catch-up contribution (age 55+): $1,000
- Maximize Your Contributions
- Make regular contributions: Set up automatic transfers to your HSA to build your balance consistently.
- Take advantage of catch-up contributions: If you’re 55 or older, contribute an additional $1,000 annually to boost your savings.
- Use Your HSA Strategically
- Cover qualified medical expenses: Use HSA funds for expenses like doctor visits, prescriptions and over the counter medications, dental/vision care, hearing aids and other IRS-approved medical costs.
- Invest for long-term growth: Consider investing your HSA balance to grow tax-free over time. After age 65, you can make withdrawals for non-medical expenses without a penalty (though they’ll be taxed as regular income).
- Carry funds forward: Unlike Flexible Spending Accounts (FSAs), HSA balances roll over year to year — your money stays with you even if you change jobs.
All HSA transactions must go toward Qualified Medical Expenses (QMEs) as defined by the IRS. You can review the full list of eligible expenses in the IRS Publication 502.
The Bottom Line
HSAs are among the most flexible and tax-efficient savings tools available. Because healthcare costs often rise with age, starting early and contributing consistently can significantly strengthen your financial security — both for medical needs and retirement. By understanding the basics of HSAs and following these tips, you can make the most out of this valuable financial tool.
Open enrollment doesn’t have to be a stressful administrative task. When planned well in advance, it becomes a valuable opportunity to review and enhance your benefits offerings, demonstrating your commitment to your team’s physical, mental, and financial well-being. A well-executed open enrollment can boost employee morale, improve retention, and ensure your workforce is supported.
Ever found a confusing document in your mailbox after a doctor’s visit, wondering if it’s a bill, especially with an “amount you owe” at the bottom? You’re not alone! That document is most likely an Explanation of Benefits (EOB) from your health insurance company. It’s crucial to remember: an EOB is NOT a bill.
Selecting the right health insurance plans for your family is a critical process that requires careful attention from start to finish. Navigating health insurance becomes much simpler when you understand its terminology. Making sense of these terms empowers you to better understand your costs, benefits, and even estimate the price of a doctor’s visit.
Want to attract and keep top talent? Your benefits package is crucial! Think beyond just health and retirement. Fringe benefits like Dependent Care Assistance Programs (DCAPs) offer real, meaningful support, especially for employees caring for kids or dependent adults.
The word “cancer” carries a weight that extends far beyond its medical implications. Beyond the physical and emotional toll, a cancer diagnosis can bring significant financial strain. While your primary health insurance will cover many treatment costs, there are often substantial out-of-pocket expenses that can quickly add up. This is where cancer insurance comes in. But what exactly is it, and how does it work?
If your company provides an employee benefit plan governed by the Employee Retirement Income Security Act (ERISA), you are likely obligated to file Form 5500. This annual report discloses key details about your organization’s benefit offerings, such as welfare benefit plans (including medical, dental, life, and disability coverage), retirement plans, fully insured plans, and self-funded plans. In this article, we break down the fundamentals of Form 5500—who must file, important deadlines, and the consequences of failing to comply.
Every year, millions of people experience mental health challenges with limited access to care. According to the World Health Organization, 
Your most valuable asset isn’t your house, car or retirement account. It’s the ability to make a living. Long-term disability insurance (LTD) provides financial protection by replacing a portion of your income—typically 50% to 70%—if you become unable to work due to a prolonged illness, injury, or accident. This benefit is paid directly to you and you determine how best to use this income replacement. It serves as a critical safety net for sustaining essential expenses like housing, medical bills, and daily living costs during extended recovery periods.
The Rise of Voluntary Benefits