The Health Savings Account (HSA) is a tax-free savings account you can use to pay for eligible health expenses anytime, even in retirement.

Contributions go in tax-free, you can invest the money in the account and you can take the money out tax-free to pay for qualified medical expenses. Associates in the HD Value or HD Standard Plan can open an account and contribute money to an HSA through HealthEquity.

Triple-tax Advantage
  1. Money goes in tax-free through pre-tax payroll deductions.
  2. Your balance can grow tax-free.
  3. Money comes out tax-free when used on eligible medical expenses.*

See below for 2022 contribution limits.

Contributions from H&R Block

When you enroll and contribute a minimum annual contribution of $150, H&R Block will contribute** the following amount to your account no matter if you choose the HD Value or HD Standard Plan:

  • $400 (single coverage)
  • $500 (family coverage)

How to use the HSA
  • Pay for eligible medical, dental, and vision expenses for you and your family using your HSA debit card.
  • You can only spend money that has been deposited in your account.
Build Your Balance
  • Unlike FSAs that have a “use it or lose it” rule, all the money in your HSA is yours to keep with no expiration date!
  • You can build up savings to pay for healthcare now or in the future — you can even use it for medical expenses in retirement!

*Money in an HSA can be withdrawn tax free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65.

**The employer HSA contribution amount will be determined as of the first day of the calendar year (or the date you first become eligible to participate in the Plan if you are hired mid-year) and will not be modified during the calendar year for any reason. You must be an active associate to receive the employer HSA contribution.

Getting Started

To open an HSA, you must be enrolled in the HD Value or HD Standard Plan. If you’re enrolled and haven’t opened an HSA yet, visit HealthEquity to open and manage your account. You’ll receive a debit card from HealthEquity to use for eligible expenses.

You will need to re-enroll in the HSA and choose a contribution amount annually as part of benefits enrollment. Prior year elections do not carry over.

2022 Contribution Limits

The total amount you and H&R Block can contribute to your HSA this year is:

  • $3,650 (single)
  • $7,300​ (family)
  • An additional $1,000 if you’re age 55 or older.
Increase Your Tax Savings with a Limited Purpose FSA

If you contribute to an HSA, you may not participate in a Health Care FSA at the same time. However, you can use your HSA together with the Limited Purpose FSA for additional tax savings. Note that with the Limited Purpose FSA, only dental and vision expenses are allowed.

Consider the Long Term

A married couple is expected to spend $350,000 on health care costs during retirement, even with Medicare coverage. If you contributed the annual maximum to your HSA for 30 years, your account could grow to $313,000. And don’t forget, H&R Block’s contributions help you reach the annual limit faster!

Source: Estimate of future account value assumes a 5% rate of return and no withdrawals.