A health savings account (HSA) is a tax-advantaged savings account available to those who are enrolled in a high-deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), funds roll over and accumulate year to year if not spent. HSAs are owned by the individual.
HSA 2014 annual contribution limits
HSA annual contributions limits – Single $3,300 / Family $6,550
HSA catch-up contributions – $1,000 for an accountholder age 55 or older
Plan Design Requirements
Minimum deductible – Single $1,250 / Family $2,500
Maximum out-of-pocket expenses – Single $6,350 / Family $12,700
(Other HSA-eligibility criteria apply including: cannot be enrolled in Medicare, have received VA medical benefits in the past three months, or be eligible to be claimed as a dependent on someone else’s tax return.)