糖心Vlog

WEX^庐 celebrated on the Benefits Buzz podcast with guest Steve Jackson, SVP of sales at . We walked through eight essential rules of health savings accounts (HSAs)鈥攁n account type that is likely to continue to grow in importance as Americans face rising medical costs.

HSAs aren鈥檛 one-size-fits-all鈥攖hey benefit spenders, savers, investors, and cautious individuals alike. Whether you鈥檙e using funds immediately, saving for the future, or looking to invest, HSAs offer unique advantages. Here鈥檚 a breakdown of the eight rules Steve shared:

1. HSAs deliver real value

HSAs can help manage medical costs by allowing pre-tax contributions鈥攚hich may lower your effective cost of eligible medical expenses by 20-30%, depending on your tax situation. They also adapt to different needs:

• Spenders can tap into funds right away for out-of-pocket healthcare costs.
  
• Savers can build balances for future needs.
  
• Investors can grow their accounts over time.
  
• Cautious individuals can explore HSAs at their own pace, starting small and learning as they go.
  

2. Eligibility requirements

To open or contribute to an HSA, you must:

• Be enrolled in an HSA-eligible health plan (also known as a qualified high-deductible health plan or HDHP).
  
• Not be enrolled in Medicare.
  
• Not be claimed as a dependent on someone else鈥檚 tax return.
  

Looking ahead, beginning in January 2026, Bronze and Catastrophic ACA plans will also qualify.

3. Eligible expenses

HSA funds can be used for a wide range of qualified medical expenses, including:

• Deductibles, copays, and coinsurance
  
• Vision and dental care
  
• Prescriptions
  
• Over-the-counter essentials such as sunscreen, bandages, thermometers, feminine care products, and more
  

4. Penalties for misuse

HSAs are designed for healthcare spending, and using funds for non-eligible expenses may result in penalties:

• Under age 65: 20% penalty plus regular income tax
  
• Age 65+: The 20% penalty no longer applies, but withdrawals not used for qualified medical expenses are taxed as regular income.
  

Pro tip: Save your receipts for qualified medical expenses you pay out-of-pocket. You can reimburse yourself from your HSA  later鈥� possibly tax-free.

5. Contribution limits

Each year, the IRS sets contribution limits. For:

• 2025: $4,300 (individual) and $8,550 (family)
  
• 2026: $4,400 (individual) and $8,750 (family)
  
• Individuals 55 and older can contribute an additional $1,000 each year as a 鈥渃atch-up鈥� contribution.
  

6. Investing opportunities

HSAs can be more than a short-term healthcare tool鈥攖hey can also be a long-term wealth-building vehicle.

• Investment options usually include mutual funds, and some HSAs even allow individual stock trading.
  
• Most providers require a minimum balance (often $1,000) before investing opportunities are available.
  

7. Year-to-year rollover

Unlike FSAs, unused HSA funds roll over every year with no limit. The account is yours for life鈥攅ven if you change jobs. This feature is especially valuable for savers and investors who want to build balances over time through compounding.

8. Recordkeeping matters

The IRS can request documentation for your HSA spending, so keeping receipts and explanations of benefits (EOBs) is crucial. Digital storage makes it easy to keep everything organized. As Jackson noted, receipts essentially become future 鈥渃ash鈥濃�攂ecause you can reimburse yourself, possibly tax-free, at any time.

HSAs can be one of the most flexible and tax-advantaged tools available to employees today. Whether you鈥檙e spending now, saving for tomorrow, or investing for retirement, understanding these eight rules can help you maximize your healthcare dollars.

At WEX, we鈥檙e proud to support HSA Day and provide the technology and tools that make it easier for employees to spend smarter, save more, and invest for the future.

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The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

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