If you’re looking for a smart way to save for healthcare expenses, a Health Savings Account – or HSA – might be your best bet.
To be eligible to contribute, you’ll need to be enrolled in a high-deductible health insurance plan and not on Medicare.
HSAs offer triple-tax advantages: contributions, earnings, and withdrawals for qualified medical expenses are all tax-free.
Use it now for out-of-pocket costs – or let it grow for retirement, when healthcare expenses can run into hundreds of thousands of dollars.
For 2025, you can contribute up to $4,300 for individuals ($4,400 in 2026) or $8,550 for families ($8,750 in 2026), plus an extra $1,000 if you’re 55 or older.
You can even invest your HSA funds for long-term growth.
Just avoid early withdrawals for non-medical expenses – there’s a 20% penalty before age 65.
Whether planning for next year or catching up for 2025, your HSA can help turn today’s savings into tomorrow’s financial security.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson, and Hawes Dickerson. Members SIPC.
