What is the maximum I can contribute to an HSA in 2026?

For 2026, the maximum HSA contribution is $4,300 for self-only coverage and $8,550 for family coverage. If you are age 55 or older, you can contribute an additional $1,000 catch-up contribution.

Can I have an HSA if I have Medicare?

No, if you are enrolled in Medicare (Part A, B, C, or D), you are not eligible to contribute to an HSA. You can still use existing HSA funds for qualified medical expenses, but you cannot make new contributions.

What happens to my HSA if I change jobs or health plans?

Your HSA is owned by you, not your employer or health plan. If you change jobs or switch to a non-HDHP, your existing HSA funds remain yours, and you can continue to use them for qualified medical expenses. However, you will no longer be able to contribute to the HSA unless you re-enroll in an HDHP.

Can I use my HSA to pay for my spouse's medical expenses?

Yes, you can use your HSA funds to pay for the qualified medical expenses of yourself, your spouse, and any qualified dependents, even if they are not covered under your HDHP. This is a significant benefit for families.

Is an HSA better than a 401(k)?

An HSA is not necessarily "better" than a 401(k), but it offers unique advantages, particularly for healthcare costs. Many financial experts recommend maximizing employer 401(k) matches first, then fully funding an HSA, and then returning to max out other retirement accounts like a 401(k) or IRA, due to the HSA's triple tax benefits for medical expenses.

Do I have to use my HSA funds every year?

No, one of the key benefits of an HSA is that funds roll over year after year indefinitely. There is no "use-it-or-lose-it" rule, allowing you to save and invest your funds for future medical expenses or retirement.

What if I use my HSA for non-medical expenses?

If you use your HSA for non-qualified expenses before age 65, the withdrawal will be subject to ordinary income tax and a 20% penalty. After age 65, non-qualified withdrawals are only subject to ordinary income tax, similar to a traditional IRA.

Health Savings Account (HSA) Guide | One Percent Finance