Top 6 reasons to use a health savings account

1. You'll hit a tax-saving triple

HSAs offer a triple tax advantage1 :

  • Contributions to your HSA are not taxed.
  • Funds in your HSA grow tax-free.
  • Any withdrawals for qualified medical expenses are also tax-free.

2. You don't lose what you don't spend

Your HSA funds are not a case of "use it or lose it."

Any money you don't use at the end of the year rolls over to the next year. Your balance can keep growing!

3. You CAN take it with you!

You always have access to the money in your account.

Your HSA is portable. It goes with you even if you get a new job with a different employer or leave the workforce.

4. You don't need a crystal ball

But it's a good idea to try to plan for what you may spend on health care.

When you contribute to your HSA, you'll have money to cover any surprising or not-so-surprising qualified medical expenses.

5. You can invest your HSA $$$

You can invest your HSA balance in mutual funds.

The money you earn from investing is tax-free. And you can keep letting it grow and use it for health care expenses in retirement

6. It's not just about you

If you claim a family member on your taxes, you can use your HSA money for their qualified medical expenses – even if you just have single coverage.

1You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax. Any interest or earnings on the assets in the account are tax free. You may be able to claim a tax deduction for contributions you, or someone other than your employer, make to your HSA. Bank of America recommends you contact qualified tax or legal counsel before establishing a HSA.