A Health Savings Account (HSA) is a tax-advantaged savings account you can use to pay for qualified medical expenses. To open and contribute to an HSA, you must be enrolled in a High-Deductible Health Plan (HDHP). The money is yours to keep — it rolls over year to year and never expires.
HSAs offer a rare triple tax advantage:
For 2026, the IRS contribution limits are $4,300 for self-only coverage and $8,550 for family coverage (with an additional $1,000 catch-up for those 55 and older).
HSA funds can be used for deductibles, copays, coinsurance, prescriptions, dental, and vision care. After age 65, withdrawals for non-medical expenses are taxed as ordinary income (but not penalized), making an HSA function like an IRA for retirement savings.
Generally no — premiums are not a qualified HSA expense except in specific situations, such as paying for COBRA continuation coverage, long-term care insurance, or Medicare premiums after age 65. Day-to-day health insurance premiums for an active plan cannot be paid from an HSA.
Your existing HSA balance stays yours and can still be used for qualified medical expenses. You just can’t make new contributions once you’re no longer enrolled in an HDHP. The account remains open, the funds don’t expire, and you can continue spending down the balance tax-free on medical costs.
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