Alert
Close

Watch the NASCAR race on Sunday at the Pocono Raceway. Join the Drive to End Hunger!

Highlights

Open

Contests and
Sweeps

Safe Driving in 2014 Sweepstakes

Learn how AARP Driver Safety can help you stay safe—and enter for a chance to win $1,000. 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.

webinars

Learn From the Experts

Sign up now for an upcoming Money webinar or find materials from a past session. 

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.

AARP Credit card from Chase

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

AARP Financial Services

Info on saving for education from AARP® College Savings Solutions from TIAA-CREF.

Member Benefits

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