An HSA is a type of savings account that let’s you set aside money on a pre-tax basis to pay for qualified medical expenses. By using un taxed dollars in a Health Savings Account (HSA) to pay for deductibles, coinsurance, copays etc, you may be able to lower Health Care costs. The funds generally are not used to pay premiums.
While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute to the HSA only if you have a High Deductible Health Plan. For 2024 the minimum deductible amounts are $1500 for an individual and $3000 for a family. Contributions can be made up to $4150 for an individual and $8300 for a family. Funds roll over from year to year if you don’t spend them and an HSA my earn interest which is not taxable.
Medicare recommends stopping contributions to an HSA 6 months prior to enrolling in Medicare to avoid tax consequences.