HSAs: The Triple Tax Break You're Probably Missing

Yes… I’m talking about it again.

If you’ve worked with me for more than about 15 minutes, you’ve probably heard me say how much I love the Health Savings Account (HSA).

And yet, at least once a week, someone still asks me: “Hey… should I really be doing that HSA thing?”

Yes. Yes, you should. 

For years, I’ve been shouting the good news from the rooftops — the HSA is one of the most powerful tools in personal finance. 

So, let’s break down why I keep bringing it up, why you should fall in love with it too, and how to get the most tax-saving, wealth-building goodness out of it.

How it Works:

The HSA is one of the very few accounts that offers all three tax advantages:

• Tax-deductible contributions
• Tax-free growth
• Tax-free withdrawals for qualified medical expenses

That’s called a triple tax advantage. It’s rare.

To contribute, you need to be enrolled in a High-Deductible Health Plan (HDHP). If you are, here’s how much you can contribute in 2026, and get a full tax deduction:

• Individual: $4,400
• Family: $8,750
• Additional $1,000 if you’re 55 or older

One big misconception: You do not have to spend the money right away. The real power comes from letting it grow. You can use it in the future for things like Medicare premiums, long-term care, and the medical expenses that come with… well… getting older.

And unlike FSAs (the old cafeteria plan) , unused HSA funds never expire. You keep the account if you change jobs or retire.

How To Maximize It:

• Max it - fully Fund your HSA every year (you have until April 15, 2026 to fund your 2025 HSA)
• Let it Grow - invest the balance instead of leaving it in cash (we can help)
• Don’t Swipe the Card - pay current medical expenses out of pocket 
• Keep Receipts – save your medical receipts (I use an email folder) and you can reimburse yourself later, even decades later
• Use the HSA strategically in retirement to reduce taxes

Bottom Line: 

If you’re eligible, the HSA is one of the smartest, simplest ways to lower taxes today and strengthen your financial future. 

Not sure if you qualify? The easiest way to find out is to check your current health insurance plan. If it’s labeled High-Deductible Health Plan (HDHP) or HSA Eligible Health Plan, you’ve hit the HSA jackpot. Still not sure:

• Review your benefits paperwork
• Ask your HR team
• Reach out to your insurance agent
• Send it to us – while we’re not health insurance experts, we can either give you an answer or find someone who can