The HSA Vault: Money You Own That Never Expires

Two cards in your wallet

How to actually use it

1. Show your medical plan card first. At the doctor, pharmacy, or emergency room, hand over your medical insurance card so the provider bills you the negotiated network rate—not full price.
2. Pay the bill with your HSA card. Once the discounted amount is confirmed, swipe your HSA debit card like a credit card. It pulls straight from your tax-free vault.
3. Keep every receipt. There is no use it or lose it—your balance rolls over forever. But the Internal Revenue Service (IRS) wants proof if you are ever asked.

The fine print, made simple

1. The 2026 contribution limits

You can put in $4,400 for self-only coverage or $8,750 for family coverage, plus a $1,000 catch-up contribution if you are 55 or older. The account has to pair with a qualifying high-deductible health plan: at least a $1,700 self-only or $3,400 family deductible, with out-of-pocket exposure capped at $8,500 and $17,000.

2. Going over the limit costs you

Excess contributions are taxed as regular income, and then carry a 6% excise tax for every year the excess stays in the account. It is not a one-time fee.

3. Non-qualified spending carries a 20% penalty

Spending HSA funds on something that is not a qualified medical expense triggers a 20% additional tax on top of ordinary income tax. That additional tax no longer applies once you are disabled, reach age 65, or die—though ordinary income tax still does.

4. Medicare changes everything

Beginning with the first month you are enrolled in Medicare, your contribution limit is zero—including months covered retroactively. Money already in the account keeps working for qualified expenses; you simply stop adding to it.

Who to call

Carrier phone numbers and member portals are listed in your own benefits packet.