Tax Benefits

Contribution Tax Benefits

If your employer offers payroll deduction, you can contribute to your HSA on a pre-tax basis. The contributions are deducted from your paycheck before taxes and is automatically deposited into your HSA. Ask your employer if they facilitate pre-tax deductions.

Contributions can also be made on a post-tax basis as an "above-the-line" deduction, allowing you to reduce your taxable income by your contribution amount.

Distribution Tax Benefits

Eligible medical expenses can be purchased tax-free with funds from your HSA. You also have the option to reimburse yourself from your HSA for eligible medical expenses paid out-of-pocket.

Interest Income Tax Benefits

The interest earned from an HSA grows on a tax-deferred basis and is not considered taxable income.

Calculate Your Tax Savings & Future Value Potential

An HSA can provide significant tax-savings. Use our Future Value Calculator to calculate your potential savings and tax-deferred growth.

Note: HSA Bank does not provide tax advice. Please consult your tax professional for tax-related questions.

HSA Bank BBB Business Review