An HSA is completely tax-free — even better than a 401(k) or Roth IRA, which both tax you somewhere along the line. Your HSA money goes in tax-free, builds earnings tax-free, and comes out tax-free when spent on eligible expenses.
Stay healthy, spend wisely, and build up tax-free savings.
Low-premium, high-deductible coverage
The CDHP covers preventive care — such as checkups and vaccines — at 100% as long as you stay in-network, so you pay nothing.
For non-preventive care — like treatment for an illness — you’ll want to plan ahead, so you’re prepared to cover your costs until the plan’s coverage kicks in. A great way to do this is to put the money you’re saving on premiums into your HSA for future use.
Tax-free savings account that’s yours forever
An HSA is the smartest way to pay for your health costs, and all the money is always yours to keep (there’s no use-it-or-lose-it rule, as with Flexible Spending Accounts). Use your HSA to stash away tax-free money you can spend on eligible medical, prescription, dental and vision expenses anytime — even in retirement.
Don't limit yourself! In 2024, you can contribute up to $4,150 to your HSA if you have individual medical plan coverage or $8,300 if you cover dependents. (2023 limits are $3,850/single coverage and $7,750/dependent coverage.) If you are 55 or older, you can contribute an additional $1,000.
Stay healthy, spend wisely, save for the future!
No other type of medical plan helps you stay healthy, spend wisely, and build up tax-free savings to pay for future medical expenses.
See a full list of fully covered preventive care services for adults and children.
You can stay healthier — and lower your medical bills — by keeping up with your preventive care. It’s FREE as long as you stay in-network, so there’s no excuse to skip it.
What can you spend HSA money on? See a list of eligible expenses.
Your HSA will always fit your needs because you can change your contributions at any time. You can save just enough to cover your everyday health expenses or use it to save up for a big expense like surgery or dental work.
In retirement, you can spend HSA money on eligible health expenses, Medicare premiums, nursing home care, long-term care and much more.
Many HSA users spend as they go, allowing what’s left to roll forward. But you can also leave your HSA money untouched so it can build up for the future — not a bad idea, since a couple may need to have as much as $361,000* in savings to cover their health care expenses
in retirement.
You can even invest your money once it reaches $2,000, which gives
you the potential for tax-free earnings growth. Visit HealthEquity or read this Investment Guide for details.
Source: EBRI.org. Assumes a 5% rate of return, the maximum contribution each year, and no withdrawals.
*Employee Benefit Research Institute, 2021 data.
Know where your local, in-network urgent care center is located before you need care. Visit Aetna and click on Find a Doctor in the top navigation bar.
Why overpay for health care and prescriptions? You’ll keep more cash in your HSA if you know how to work the health care system. Take charge of your spending with these money-saving secrets.
when you need medical attention
to save on medical expenses
Keep your receipts! If the IRS audits you about your HSA before age 65, you’ll need to prove the account was used for qualified expenses.
Along with your HSA’s incredible tax benefits come a few rules. Knowing them will help you take full advantage of your account, now and in retirement.
Any time you are enrolled in a qualified high deductible health plan, like a CDHP through Sonos, you may contribute.
You can contribute to your HSA even after age 65; however, you cannot contribute to an HSA if you’re enrolled in Medicare.
The same things that are eligible before age 65, plus:
You pay ordinary income tax plus a 20% penalty on the amount withdrawn.
No penalty — you’ll just pay ordinary income tax on the amount withdrawn.
To enroll in and contribute to an HSA, you must meet the following requirements:
If you meet these requirements, you are eligible for an HSA even if your spouse has non-CDHP family coverage, provided you are not covered by your spouse’s medical benefits.
The Last Month Rule
Under the last-month rule, you are considered eligible to contribute to an HSA for the entire year if you meet the individual eligibility requirements on the first day of the last month of your tax year (December 1 for most taxpayers). You are treated as having the same CDHP coverage for the entire year as you had on the first day of the last month, if you didn’t otherwise have coverage.
If you enroll in Medicare Part A, the coverage is retroactive for up to 6 months, but will be no earlier than your Medicare Part A eligibility date. You should plan to stop making HSA contributions around 6 months before enrolling in Medicare.
After you enroll in Medicare and stop making HSA contributions, you are still able to withdraw funds tax-free for qualified medical expenses. You can use your HSA to pay for some Medicare expenses (but not for Medigap premiums).
If you enroll a domestic partner as a dependent under your HDHP — and your partner also elects HDHP coverage through their employer — you each can generally contribute up to $8,300 to your respective HSAs.
Important exception: If either of you can be claimed as someone else's tax dependent, that person is not eligible to contribute to an HSA.
HSA contributions are made on a pre-tax basis federally and in all states, excluding California and New Jersey. If you live in California or New Jersey, your HSA contributions will be subject to state taxes. No matter what state you live in, your HSA contributions will not be subject to federal taxes.