Health Savings Account

You're eligible to open an HSA if you're enrolled in an HSA-qualified high-deductible health plan, aren't covered by another non-HDHP plan or Medicare, and can't be claimed as a dependent on someone else's tax return. You'll also need a valid Social Security number and a primary residence in the U.S.

For 2026, you can contribute up to $4,400 with self-only coverage or $8,750 with family coverage, plus an extra $1,000 if you're 55 or older. Your limit may be prorated if you're eligible for only part of the year, and contributions can be made until the tax filing deadline, usually April 15 of the following year.

Qualified medical expenses include costs like doctor's fees, prescriptions, contact lenses, and dental treatment for you, your spouse, and your dependents, plus Medicare Parts A, B, and D premiums after age 65. IRS Publication 502 lists every expense that qualifies.

If you use HSA funds for a non-qualified expense, you'll owe income tax plus a 20% penalty, unless the withdrawal happens after disability or death. Once you turn 65, the penalty no longer applies, and those withdrawals are taxed as income, similar to an IRA.

Your HSA stays with you when you change jobs or health plans, and you can keep it at CCCU or roll it to another institution. If your new plan isn't HSA-qualified, you can't add new contributions, but your existing balance is still yours to spend tax-free on qualified care.