During open enrollment, many want to better understand their benefit options. Below are the top five questions about health savings accounts.

1. What are some of the key benefits that health savings accounts bring?

The money an accountholder puts into an HSA can grow over time to be used for future medical expenses. HSAs also allow for accountholders to make catch-up contributions if they are age 55 or older. This opportunity to save money on a tax-free basis makes HSAs a valuable complement to a 401(k) and/or IRA when considering future savings.

HSAs also have a triple tax advantage1:

  • Money goes into the account tax-free
  • Money earns tax-free interest
  • Investment earnings and money comes out tax-free when used for eligible expenses

2. What are the maximum HSA contribution amounts for 2025 and 2026?

Contributing to an HSA helps consumers pay for medical expenses they have now while also saving for medical expenses they will have in the future.

In 2025, the maximum contribution amount for HSAs is $4,300 for individuals and $8,550 for family coverage. In 2026, HSA maximum contributions will increase to $4,400 for individuals and $8,750 for those with family coverage.

For both 2025 and 2026, if you are 55 or older, you can contribute an extra $1,000 at the end of the year. By contributing the maximum amount to their HSA each year and considering investment options, accountholders will be setting themselves up to cover healthcare expenses both now and in the future.

3. Who are HSAs for?

Every consumer can benefit from opening an HSA. High deductible health plans paired with an HSA were created as a way to help control health care costs and allow each accountholder to decide how much money to set aside for health care costs. With an HSA, individuals and families can build tax-free wealth through deductible contributions, invest for growth over time and take tax-free distributions and reimbursements when needed.1

4. What is the difference between an HSA and an FSA?

Unlike FSAs, an HSA allows you to roll over your entire unspent amount year after year and calculates, compounds and credits interest monthly based on the applicable rate for different tiers of the account balance. Money you put in an HSA will always be yours regardless of where or if you’re employed, whereas you can’t take your FSA money with you if you change jobs or retire. The money in an HSA isn’t taxed at any point during the account’s life and neither are any gains if some of the money in the HSA is invested. Money withdrawn for qualified medical expenses is also tax-free.1

5. What are HSA eligible items?

You can use your balance to pay for qualified medical expenses for you or your covered dependents. Some examples include:

  • Your deductible
  • Dental treatments, exams or cleaning costs
  • Doctor’s visits
  • Diagnostic devices such as blood sugar test kit
  • Prescription drug costs
  • Certain vaccines, such as the flu shot
  • Some over-the-counter medications
  • Vision expenses such as contact lenses or glasses
  • Chiropractic or acupuncture fees
  • Eye surgery

You can find a full list of HSA eligible expenses for in IRS Publication 502‡.

Heath savings accounts are an effective way for individuals to take control of their financial well-being both now and in the future. Ask your employer what decision-support tools are available to help make health care decisions stress-free, and consider working with an advisor who can help with your retirement planning.

Learn more about UMB Healthcare Services, which has one of the best HSAs for 2025 among all HSA providers. (Source: Investor Business Daily’s Best HSA Accounts For 2025‡)

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