Question 1

What is a Health Savings Account (HSA)?

Accepted Answer

An HSA is a tax-advantaged savings account paired with a High Deductible Health Plan (HDHP). You contribute pre-tax money, it grows tax-free, and you can spend it on qualified medical expenses — also tax-free. It's often called the "triple tax advantage."

Question 2

Who is eligible to open an HSA?

Accepted Answer

To open and contribute to an HSA you must be enrolled in an HSA-qualified High Deductible Health Plan (HDHP), not be enrolled in Medicare, not be claimed as a dependent on someone else's tax return, and not have a general-purpose Flexible Spending Account (FSA).

Question 3

What is the difference between an HSA and an FSA?

Accepted Answer

The key difference is rollover: HSA funds roll over indefinitely year to year — there's no "use it or lose it." FSA funds typically expire at year end. HSAs are also individually owned (yours even if you change jobs), while FSAs are employer-owned. You need an HDHP to have an HSA; FSAs can be paired with any health plan.

Question 4

What qualifies as a High Deductible Health Plan (HDHP)?

Accepted Answer

For 2024, an HDHP has a minimum annual deductible of $1,600 (individual) or $3,200 (family), and maximum out-of-pocket limits of $8,050 (individual) or $16,100 (family). Your insurer or HR department can confirm if your plan qualifies.

Question 5

Can I have an HSA if my spouse has a different health plan?

Accepted Answer

Yes, as long as you are enrolled in an HSA-qualified HDHP and your spouse's plan does not provide you with non-HDHP coverage. If your spouse has a general-purpose FSA that can pay your medical expenses, you generally cannot contribute to an HSA.

Question 6

How much can I contribute to my HSA in 2024?

Accepted Answer

For 2024, the IRS contribution limits are $4,150 for self-only coverage and $8,300 for family coverage. If you are 55 or older, you can contribute an additional $1,000 catch-up contribution.

Question 7

Do employer HSA contributions count toward my limit?

Accepted Answer

Yes. Employer contributions and your own contributions combined cannot exceed the annual IRS limit. For example, if your employer contributes $500 for self-only coverage in 2024, your personal contribution limit is $3,650.

Question 8

What is the deadline to contribute to my HSA?

Accepted Answer

You can contribute to your HSA until the federal tax filing deadline — typically April 15 of the following year. This means you can make 2024 contributions up until April 15, 2025.

Question 9

Can I contribute to an HSA if I am self-employed?

Accepted Answer

Yes. Self-employed individuals can open and contribute to an HSA as long as they are enrolled in an HSA-qualified HDHP. You'll set up your own HSA at a bank or financial institution rather than through an employer.

Question 10

Can I change my HSA contribution amount during the year?

Accepted Answer

Yes. If you contribute through payroll deductions, you can typically change the amount during open enrollment or after a qualifying life event. If you contribute directly, you can adjust at any time up to the annual limit.

Question 11

What products are HSA-eligible?

Accepted Answer

HSA-eligible products include prescription medications, over-the-counter medicines (no prescription required since the CARES Act 2020), first aid supplies, blood pressure monitors, contact lenses, bandages, allergy medicine, menstrual care products, and thousands more. IRS Publication 502 provides the full list.

Question 12

Are over-the-counter medicines HSA-eligible?

Accepted Answer

Yes — since the CARES Act passed in 2020, you can use HSA funds for OTC medicines without a prescription. This includes cold medicine, pain relievers, allergy pills, antacids, sleep aids, and more.

Question 13

Can I use my HSA for dental and vision expenses?

Accepted Answer

Yes. Dental expenses (exams, cleanings, fillings, orthodontia) and vision expenses (eye exams, prescription glasses, contact lenses, LASIK) are HSA-eligible.

Question 14

Are vitamins and supplements HSA-eligible?

Accepted Answer

Generally no — vitamins and supplements taken for general health are not eligible. However, if a doctor prescribes a specific supplement to treat a diagnosed medical condition (such as iron supplements for anemia), it may be eligible with a Letter of Medical Necessity.

Question 15

Can I use HSA funds for mental health services?

Accepted Answer

Yes. Therapy, psychiatry, and other mental health treatment costs are HSA-eligible medical expenses, including sessions with licensed therapists, psychologists, and psychiatrists.

Question 16

Is sunscreen HSA-eligible?

Accepted Answer

Yes — sunscreen with SPF 15 or higher that is broad-spectrum (protects against UVA and UVB) is HSA-eligible. This was clarified by the IRS and applies to most consumer sunscreen products.

Question 17

Can I use my HSA for my spouse or dependents?

Accepted Answer

Yes. You can use HSA funds for qualified medical expenses for yourself, your spouse, and any dependents you claim on your tax return — even if they are not covered by your HDHP.

Question 18

How do I pay for eligible expenses with my HSA?

Accepted Answer

Most HSAs come with a debit card you can swipe directly at pharmacies, doctors' offices, and retailers. You can also pay out of pocket and reimburse yourself from your HSA at any time — even years later — as long as the expense occurred after you opened your HSA.

Question 19

Do I need to save receipts for HSA purchases?

Accepted Answer

Yes. The IRS may audit HSA distributions and require proof that expenses were qualified. Keep receipts and any documentation for HSA-eligible purchases. HSA Shop's app can help you track your eligible purchases.

Question 20

Can I use my HSA card at any store?

Accepted Answer

HSA debit cards work at most pharmacies (CVS, Walgreens, Rite Aid), grocery stores, and medical retailers. Not all items at every store are automatically marked as eligible — keep your receipts and only use your HSA card for qualified expenses.

Question 21

What happens if I use my HSA for a non-eligible expense?

Accepted Answer

If you use HSA funds for a non-qualified expense, the distribution is subject to income tax plus a 20% penalty. After age 65, non-qualified withdrawals are taxed as ordinary income but the 20% penalty no longer applies.

Question 22

Can I invest my HSA funds?

Accepted Answer

Yes. Many HSA providers allow you to invest funds above a minimum threshold (often $1,000-$2,000) in mutual funds, ETFs, or other investments. Investment gains are also tax-free when used for qualified medical expenses, making the HSA a powerful long-term savings vehicle.

Question 23

What are the tax benefits of an HSA?

Accepted Answer

HSAs offer a triple tax advantage: (1) contributions are tax-deductible or pre-tax via payroll, (2) funds grow tax-free, and (3) withdrawals for qualified medical expenses are tax-free. No other account type offers all three benefits.

Question 24

Do HSA funds roll over at the end of the year?

Accepted Answer

Yes — 100% of your HSA balance rolls over every year, indefinitely. There is no "use it or lose it" rule with HSAs, unlike FSAs. Unused funds simply accumulate and continue to grow.

Question 25

Do I need to report my HSA on my taxes?

Accepted Answer

Yes. You report HSA contributions using IRS Form 8889, which you attach to your Form 1040. Your HSA custodian will send you Form 5498-SA (contributions) and Form 1099-SA (distributions) each year.

Question 26

What happens to my HSA when I turn 65?

Accepted Answer

At 65, your HSA becomes very flexible. You can withdraw funds for any purpose without the 20% penalty — you'll just pay ordinary income tax on non-medical withdrawals (same as a Traditional IRA). Withdrawals for qualified medical expenses remain completely tax-free.

Question 27

Can I roll over funds from an IRA to an HSA?

Accepted Answer

Yes, once in your lifetime you can do a qualified HSA funding distribution from a Traditional or Roth IRA to your HSA — up to the annual contribution limit. This is tax-free but you must remain on an HDHP for 12 months after.

Question 28

What happens to my HSA if I change jobs?

Accepted Answer

Your HSA is yours — it goes with you. Unlike an FSA, your HSA is not tied to your employer. You keep all the funds and can continue using them for qualified medical expenses, though you can only make new contributions if you're enrolled in an HDHP.

Question 29

What is HSA Shop?

Accepted Answer

HSA Shop is a free directory of HSA-eligible products. We help you find what you can buy with your HSA across 7,000+ products in 16 health categories. The web site covers HSA education; the mobile app lets you search by symptom, get price alerts, and build HSA shopping lists.

Question 30

Is HSA Shop free to use?

Accepted Answer

Yes — completely free. The web directory, mobile app, and all features are free with no subscriptions or hidden fees.

Question 31

How do I download the HSA Shop app?

Accepted Answer

Search "HSA Shop" in the Apple App Store or Google Play Store. The app includes symptom-based product search, price change notifications, and your personal HSA shopping list.

Question 32

Does HSA Shop sell products directly?

Accepted Answer

No. HSA Shop is a directory. When you select a product, you're directed to the retailer's site to complete your purchase using your HSA card.

Question 33

How is HSA Shop different from just searching Amazon or Google?

Accepted Answer

HSA Shop's product data is enriched specifically for HSA eligibility — we've mapped products to IRS categories, added eligibility reasoning, and built a symptom-to-product index you won't find anywhere else. Instead of guessing whether a product qualifies, we've done the research for you.

Frequently Asked Questions

HSA Basics

Contributions

Eligible Expenses

Using Your HSA

Tax & Rollover

About HSA Shop