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Health Savings Account (HSA)

An HSA or Health Savings Account is a special savings account available to people enrolled in a high-deductible health plan (HDHP). TRS-ActiveCare HD meets the IRS definition of an HDHP.*

*If you're a participant on the TRS-ActiveCare Primary or TRS-ActiveCare Primary+ plan, you don't have an HSA. Only participants on the TRS-ActiveCare HD plan have an HSA.

How does an HSA work?

With an HSA, you can set money aside on a pre-tax basis and use it to pay for qualified out-of-pocket medical expenses including:

deductibles
copays
coinsurance

This can help lower your overall health care costs. Qualified medical expenses are defined by the Internal Revenue Service (IRS).

With an HSA, you can take your money with you – and use the funds for qualified medical expenses – if you change health plans or jobs, retire, or move to another city.

If you don’t use all the money in your account by the end of the year, you can roll it over.
You don’t “lose” your funds and your HSA never expires.
Your funds grow from year-to-year when you don’t use them, and you keep the earned interest.

Contribution limits

HSA contribution limits vary depending on who’s covered by your plan.

For calendar year 2023, the maximum contribution for individual coverage is $3,850.
For calendar year 2023, the maximum contribution for family coverage is $7,750.
Participants 55 and older can make an extra $1,000 catch-up contribution to their HSA.

What isn’t covered with an HSA?

While your money rolls over year to year, it could run out if you have a major medical expense and don’t have enough money in your HSA to cover it. Also, an HSA isn’t an emergency piggy bank. There are penalties if you use it to cover non-qualified medical expenses.

To learn more, visit Health Savings Account at healthcare.gov or the IRS’ HSA page.