There are so many but we'll give you the three best.
First of all, it's yours. HSAs belong to the individual – NOT the employer and so if you leave your job, the money is still yours and goes with you.
Second, there is no use it or lose it at the end of the year. Your HSA is your money and rolls into the next year if you don't spend it.
Third, the HSA is a triple tax-advantaged savings vehicle where the funds can be used for qualified medical expenses. You contribute money on a pre-tax basis, your money can be invested or earn interest with no taxes on such growth, and be withdrawn at any time and with no penalty so long as the money is used for qualified medical expenses. You can think of the HSA as the 401(k) for your healthcare with a bit more flexibility.
- The individual contributions limit for an HSA is: $3,50 (2019) / $3,550 (2020).
- The family contribution limit for an HSA is: $7,000 (2019) / $7,100 (2020).
- In addition to the limits above, if you are 55+, the catch-up contribution is an additional $1,000.