A health savings account (HSA) is an account you can establish and use for medical costs if you have a qualifying high-deductible health insurance policy. Some employers offer HSAs, but individuals insured outside employer plans can set up their own. For plan year 2020, the minimum deductible for a qualifying individual high-deductible health insurance plan is $1,400 ($2,700 for a family). When looking for health insurance, ask if it is HSA eligible.
You can contribute up to $3,550 for self-only coverage and up to $7,100 for a family policy in 2020, and funds in an HSA roll over to the next year if you don’t use them. The money you deposit in an HSA is tax deductible, and it can be used to pay for expenses under your deductible, as well as co-payments and other expenses, including some costs that aren’t covered by your insurance policy.
