Yes, unsued will carryover into the next year. There is no limit or cap on how large the balance can grow in your HSA. However, the annual limit you can contribute to the HSA may not exceed the maximum contribution amount set by the IRS each year, plus the “catch up” contribution for those ages 55 to 65.
64Cost Savings
Your Estimated HSA Cost Savings Example
| Traditional PPO + FSA | HDHP + HSA | |
|---|---|---|
| Gross Annual Pay | $60,000 | $60,000 |
| Maximum Annual Health Care FSA Contribution | $3,050 | $7,750 |
| Estimated Annual Family Premium | -$13,000 | -$11,000 |
| Adjusted Gross Pay | $43,950 | $41,250 |
| Estimated Tax Rate (15%) | $6,622.50 | $6,255 |
| Estimated Annual Expenses | $3,050 | $3,050 |
| Remaining FSA vs. HSA Balance | + $0 | $4,450 |
| Remaining Take Home Pay with FSA vs. HSA | $34,677.50 | $37,045 |
YOUR TAKE HOME PAY COULD BE $2,367.50 MORE WITH THE HSA
All figures in this table are estimates and based on an annual salary and maximum contribution limits to the benefit account. Your salary, tax rate, health care expenses, and tax savings may be different.
Who Is Eligible?
In order to be eligible to enroll and contribute to a Health Savings Account (HSA), you must first ensure you meet the necessary requirements. If your answers to the below questions match ours then you are likely eligible to open and contribute to an HSA.
| Question | Answer |
|---|---|
| Are you currently enrolled or covered by a HSA-qualified high deductible health plan? | YES |
| Is the annual deductible for your health insurance plan higher than $1,350 for individual coverage or higher than $2,700 for family coverage? | YES |
| Is the annual maximum out-of-pocket for your health insurance plan less than $6,750 for individual coverage or less than $13,500 for family coverage? | YES |
| Are you covered by any other health plan (such as a spouse or parent) that is not considered a HDHP? | NO |
| Are you currently enrolled in Medicare (Part A or Part B) | NO |
| Are you currently enrolled in either a Health Care Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) that reimburses you for medical expenses in addition to dental and vision expenses? | NO |
Contribution Limits
| Self-Only Coverage | 2024 | 2025 | 2026 |
|---|---|---|---|
| Maximum Annual HSA Contribution | $4,150 | $4,300 | $4,400 |
| HSA Catch-up Contribution (Age 55 or Over) | $1,000 | $1,000 | $1,000 |
| Minimum Annual Deductible for HDHP | $1,600 | $1,650 | $1,700 |
| Maximum Out-of-Pocket Limit for HDHP | $8,050 | $8,300 | $8,500 |
| Family Coverage | 2024 | 2025 | 2026 |
| Maximum Annual HSA Contribution | $8,300 | $8,550 | $8,750 |
| HSA Catch-up Contribution | $1,000 | $1,000 | $1,000 |
| Minimum Annual Deductible for HDHP | $3,200 | $3,300 | $3,400 |
| Maximum Annual Out-of-Pocket Limit for HDHP | $16,100 | $16,600 | $17,000 |
Distributions from your HSA used exclusively to pay for qualified medical expenses for you, your spouse, or dependents are excluded from your gross income. Your HSA funds can be used for qualified expenses and will continue to be free from federal taxes and states taxes (for most states) even if you are not currently eligible to make contributions to your HSA. If you take a non-qualified distribution, you are subject to ordinary income tax and a 20 percent penalty tax. If you are age 65 or older, disabled, or for the year in which you die, the 20 percent penalty may not apply.
Yes. Your HSA funds earn interest. Any earnings on your HSA funds are also tax free.
Money may be deposited to your HSA through payroll deduction, if your employer allows, or you may make deposits directly to your account. Deposits may be made periodically or in a lump sum, but only up to the contribution limits set by the IRS.
Note: You will use IRS Form 1040 for your HSA contributions, not the short form 1040A or 1040EZ. This deduction is taken “above the line”: you do not need to itemize contributions on Schedule A in order to claim the deduction for HSA contributions.
