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Find the information you need to decide whether an HSA-eligible health plan and HSA are right for you.

HSA-eligible health plan (HEHP)

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Turning 26? Consider enrolling in your own HSA-eligible health plan

If you’re losing your parent’s health coverage and choosing your own, you typically have 30 days after your birthday to enroll in your own plan. Check with your employer on specifics and confirm when coverage on your parent’s plan ends to avoid any lapse in coverage.

If you’re covered by a parent’s HSA-eligible health plan, you may be able to open your own HSA

If you are not a tax-dependent and are covered by a parent’s HEHP, you can open and contribute to your own HSA up to the family limit.

Also known as a “High-Deductible Health Plan”

These types of health plans may not be obvious in name, so look at the details carefully. Look for references to “HSA” or “high deductible,” but don’t worry—that doesn’t mean it’s always more expensive.

Generally has lower monthly premiums for a health plan

That means less money will be taken out of your paycheck each month to pay for your health plan.

Offers comprehensive care for a variety of medical services

Includes access to in-network and out-of-network health care providers. These plans typically cover preventive care services free of charge, without requiring a deductible to be met first.

You must be covered by an HSA-eligible health plan to open and contribute to an HSA

As the name suggests, enrolling in one of these plans makes you eligible to open an HSA.

Health savings account (HSA)

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Money is tax-free² when you put it in, if it grows, and when you take it out to spend on qualified medical expenses

This is also called the “triple tax advantage” and is a unique benefit of the HSA.

Tax-deductible contributions: Contributions to an HSA are tax-deductible, meaning that you can deduct them from your gross income on your tax return, reducing your taxable income.

Tax-free withdrawals: Withdrawals from an HSA for qualified medical expenses are tax-free, including expenses such as doctor visits, prescriptions, and other eligible health care expenses.

Tax-free growth: Any interest or investment earnings on the funds in your HSA grow tax-free.

Funds are yours to keep and never expire, unlike a flexible spending account (FSA)

HSA money is not “use it or lose it,” and your entire HSA balance carries over from year to year, even if you change employers, retire, or change health plans. This provides the opportunity for your money to grow over time.

Spend on qualified medical expenses like contact lenses, sunscreen, and dental appointments

When you, your spouse, and tax dependents have qualified medical expenses not covered by your health plan, you can use your HSA to pay for them tax-free. Look up IRS Publication 502 for a full list of qualified medical expenses.

Option to deposit only the amount you need, when you need it, with HSA on the Go^SM

If you can’t set aside money for your HSA on a regular basis, you can still get some of the tax savings. When you have a qualified medical expense, contribute only the amount you need and pay your provider directly from your HSA or reimburse yourself for expenses paid out of pocket. Then, declare your contribution on your tax return to reduce your taxable income.

Easily view and manage your account with the Fidelity Health^® app

Our mobile app gives you an easier way to manage your health care expenses all in one place, wherever you are, including the ability to easily scan and save receipts.