Alert
Close

Think you know AARP? What you don't know about us may surprise you. Discover all the 'Real Possibilities'

Highlights

Open

You and Your Town Contest-You could win an AARP RealPad

AARP Auto Buying Program

Contests and
Sweeps

$10,000 Winter Escapes Sweepstakes

Beat the cold and cozy up to a chance of winning $10,000! See official rules.

Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

AARP Books

Visit the Money Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular
articles

Viewed

Cut Your Medical Costs Through Lower Taxes

9 things to know about health savings accounts

5. What if money is left over in my account at year-end?

Unlike with a flexible spending account (FSA), funds in an HSA roll over and accumulate year to year if not spent. Any money in your account will be added to your next year's deposits to pay for future medical care.

If you ever decide to stop contributing to your HSA, any money left in it will still be available to be spent on qualified medical expenses.

6. Who qualifies for an HSA?

Your family or you are eligible if:

  • You have no other health care coverage except for certain exceptions, such as plans limited to dental and vision care.
  • You're not enrolled in Medicare.
  • You're not claimed as a dependent on someone else's tax return.

7. How can I open an HSA?

You may sign up through banks, credit unions, insurance companies and other approved companies. Employers may also set up HSAs for employees.

8. How can I tell whether an HSA is right for me?

This depends mainly on your taxable income and your current health care expenses. If both are high, you may be able to use an HSA to make many — even most — of your health care expenses tax-deductible.

9. Where can I get more information?

Read this IRS publication for details. The rules and provisions of HSAs are too complex to cover in full here.

Also of interest: Save for medical costs with an HSA. >>

William J. Lynott is an author and freelance writer who specializes in business and financial issues.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Life insurance: you are covered rain or shine

Exclusive annuities for members from AARP Lifetime Income Program from New York Life.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Homeowners Insurance
Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Rewards for Good

Your Points Balance:

Learn More

Earn points for completing free online activities designed to enrich your life.

Find more ways to earn points

Redeem your points to save on merchandise, travel, and more.

Find more ways to redeem points