Health Savings Account (HSA)

A personal account for healthcare spending, saving, and investing

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Overview & Eligibility

What is a Health Savings Account?

A Health Savings Account (HSA) is a tax-advantaged medical savings account available to employees enrolled in an HSA-qualified High-Deductible Health Plan (HDHP). HSAs empower participants to set aside pre-tax dollars to cover qualified medical expenses, whether today or years down the road. Common HSA-eligible expenses include copays, deductibles, prescription medications, over-the-counter products, dental care, vision care, and thousands of other IRS-approved healthcare costs.

The HSA triple tax advantage is what sets this benefit apart from any other savings vehicle: contributions go in pre-tax, funds grow tax-free, and withdrawals for qualified medical expenses are never taxed. And unlike a Flexible Spending Account (FSA), HSAs have no “use it or lose it” rule, so your balance rolls over year after year. Account holders can even invest their HSA funds in mutual funds or other investment options, turning their healthcare account into a powerful long-term savings and retirement planning tool.

HSA eligibility requires enrollment in an IRS-qualified HDHP with no disqualifying secondary coverage. The IRS sets annual HSA contribution limits, which are subject to change each year. For employers, pairing an HSA with an HDHP is a proven, cost-effective benefits strategy, one that drives employee financial wellness and generates meaningful FICA tax savings on employer and employee contributions alike.

How Can Ameriflex Help?

Ameriflex is a trusted, industry-leading HSA administrator helping employers across the country build smarter, more competitive health benefits programs. We provide end-to-end Health Savings Account administration, from seamless onboarding and IRS compliance support to intuitive account management tools that make the HSA experience simple for both HR teams and employees.

Our platform integrates directly with your High-Deductible Health Plan, streamlining contribution management, real-time reporting, and participant communications. We also offer employee education resources so your workforce understands how to maximize their HSA tax advantages and build long-term healthcare savings from day one.

Ready to strengthen your benefits program? Contact our team to learn how Ameriflex can elevate your HSA offering. Explore our news page to see how HSAs and HDHPs work together in practice, or download our Ultimate HSA Guide for a comprehensive look at contribution strategies, investment options, and long-term planning.

2026 Contribution Limit:

Single – $4,400

Family – $8,750

This is the maximum amount that can be contributed to an HSA each year, per the IRS.

The Value for Employees

Triple Tax Savings

Every dollar an employee contributes to an HSA lowers their taxable income, funds grow tax-free, and withdrawals for qualified expenses are tax-free.

Employee-Owned

It’s a personal savings account owned by the employee. They can keep it even if they change jobs or retire. Employees receive an Ameriflex Debit Mastercard® linked to their HSA that can be used for eligible purchases everywhere Mastercard® is accepted.

Investing & Saving

Employees can save and invest their funds with over 20+ investment options. HSA funds roll over year to year, allowing long-term growth if there are no immediate spending needs.

The Value for Employers

Cost Savings

Since contributions to HSAs are taken out pre-tax, no payroll taxes are due on the amounts employees contribute to the HSA.

Employee Engagement

Helping employees save money on their everyday medical expenses can aid in employee retention and recruitment. Employers can also make contributions to the HSA to encourage adoption.

Expert Support

The Ameriflex Client Relationship Team is eager to answer questions and provide assistance. Our Net Promoter Score (NPS) far exceeds the healthcare average.

20+ Investment Options

An Ameriflex HSA provides participants more options to maximize their financial savings and growth. Participants can choose to invest a portion of their HSA funds in a variety of 20+ mutual funds.

No Hidden Fees

We don’t believe participants should have to pay extra fees to reach their full savings potential. By eliminating hidden fees, participants keep more of their hard-earned money for current and future health needs.

$500 Investment Threshold

While many HSA administrators require a $2,000+ account balance before funds can be invested, Ameriflex has a modest $500 investment balance requirement, allowing participants to invest their money faster.

Health Savings Account FAQs

What type of health plan is required to offer an HSA?

To contribute to an HSA, employees must be enrolled in an IRS-qualified High-Deductible Health Plan (HDHP). Employers should confirm their health plan meets annual deductible and out-of-pocket requirements established by the IRS to ensure eligibility.

What is the difference between an HSA and an FSA?

HSAs are owned by the individual and roll over year to year, while Flexible Savings Account (FSA)s are employer-sponsored accounts that typically require funds to be used within the plan year. HSAs also offer long-term savings and investment opportunities that FSAs do not.

Can an HSA be paired with an ICHRA?

Yes. An HSA can be paired with an Individual Coverage HRA (ICHRA) as long as the individual is enrolled in an HSA-eligible health plan. This combination allows employers to reimburse insurance premiums through an ICHRA while employees save for qualified medical expenses with an HSA.

What expenses can be paid for with HSA funds?

HSA funds can be used for a wide range of IRS-qualified medical expenses, including doctor visits, prescriptions, dental care, vision care, and certain over-the-counter items.

Can employers contribute to employee HSAs?

Yes. Employers can choose to contribute to employee HSAs as part of their benefits strategy. Contributions are tax-deductible for the employer and exempt from payroll taxes, offering both financial and recruitment advantages.

What happens to unused HSA funds?

Unused HSA funds roll over automatically each year. Because the employee owns the account, funds remain with them even if they change jobs or retire, reducing administrative burden for employers and providing long-term value for employees.