You can put money into your HSA and, if you use it to pay for qualifying medical expenses, it’s all tax-free. And since there are no minimum balance requirements with an HSA, you’ll start earning interest right away.
There's no minimum contribution, but there is a limit to how much you can contribute each year. The federal government sets these limits. The easiest way to contribute to your HSA is through pre-tax payroll deductions at work. If your employer doesn’t offer this service, you can always make tax-deductible contributions yourself.
Because your health savings account has tax advantages, your tax return will need to show how you used your HSA dollars. Your HSA administrator will send you a report with the details you need. You also can download a history of your HSA deposits and withdrawals from your secure member website.
Here are a few tips on how to get the most out of it:
*HSAs are currently not available to HMO members in California and Illinois.