Health Savings Accounts (HSAs)

A Health Savings Account (HSA) is an individually-owned, tax-advantaged account that you can use to pay for current or future eligible medical expenses. With an HSA you’ll have the potential to build more savings for health care expenses or additional retirement savings through self-directed investment options. 

This benefit is only available to individuals enrolled in one of the State High Deductible Health Plans (HDHPs). If you enroll in one of the state HDHPs, you are required to enroll in the HSA.

Money in your HSA is yours, even if you leave the HDHP plan or state service.

• Pre-tax contributions reduce your taxable income.
• Post-tax contributions are tax deductible.
• You can make changes to your contribution at any time.
• Distributions for eligible medical expenses are tax-free.
• HSA funds carry over year-to-year without forfeiture.
• Contributions to your HSA belong to you, even if you retire or change employment.¹
• Grow your savings over time by earning interest.
• After age 65, your funds can be withdrawn for any purpose without penalty (subject to regular income taxes).

¹ Employees that terminate employment but keep their HSA open and active with TASC will pay a monthly administrative service fee. Retirees enrolled in the state HDHP/HSA benefit option are not required to pay the monthly administrative fee.

• You can contribute to your HSA via payroll deduction or by online transfer from your personal bank account. Your employer (if eligible for employer contribution) or third parties, such as a spouse or parent, may contribute to your account as well.
• You can pay for eligible medical expenses with your payment card or pay out-of-pocket. If you pay out-of-pocket, you can either choose to reimburse yourself or keep the funds in your HSA to grow your savings.

Visit the TASC microsite to view resources, and access the member portal. Use the member portal or TASC mobile app to manage your account 24/7.

There are a number of requirements you must meet in order to be eligible for an HSA.

You and others (your employer, parents, spouse, etc) may contribute up to $4,400 (individual coverage) or $8,750 (family coverage) to your HSA for the 2026 plan year.

If eligible, your employer may add $852 (individual coverage) or $1,704 (family coverage) to your HSA. Your employer's contribution will be added in installments

You must incur all eligible expenses for the 2025 benefit period by December 31, 2025. For the 2026 benefit period, you must incur all eligible expenses by December 31, 2026. The Health Savings Account (HSA) can only be used to pay for eligible medical expenses incurred after your HSA was established.

While you should always try to submit requests for distribution during the same plan year in which the expense was incurred, there is no deadline to request an HSA distribution.

All unused HSA funds carry over year-to-year without forfeiture.

An eligible expense is a health care service, treatment, or item the IRS states can be paid for without taxes. Eligible expenses can be incurred by you, your spouse, or qualified dependents. The Health Savings Account (HSA) can only be used to pay for eligible medical expenses incurred after your HSA was established.