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Health savings accounts — the triple-tax account

The only account that is untaxed going in, growing, and coming out — who it fits, and the Medicare cutoff that ends contributions.

A note on who Max is. Max is a cartoon owl. He is not a financial advisor, insurance agent, or tax professional, and nothing here is personalized advice. When a question turns personal, he does not answer it — he teaches the general version and points you to a licensed conversation, which is automated and says so before it says anything else.

What it is

A health savings account pairs with a qualifying high-deductible health plan. Contributions go in pretax, the balance grows untaxed, and withdrawals for qualified medical costs come out untaxed — the only account that gives you all three. Money not spent on care stays invested and rolls forward with no deadline.

The 2026 figures

Contribution limit
$4,400 self-only, $8,750 family, plus $1,000 catch-up at 55 or older
Qualifying plan minimum deductible
$1,700 self-only, $3,400 family
Qualifying plan out-of-pocket maximum
$8,500 self-only, $17,000 family

Who it fits — and who it does not

Fits
Healthy savers with cash to pay current medical costs from outside the account, who will invest the balance and keep receipts for the future.
Does not fit
Anyone who needs the money for this year's care, or who does not have qualifying high-deductible coverage.

Education only

This is how the account works, not advice to open one or a recommendation of any provider.

The trap that lurks here.

Medicare ends it — and can reach backward. HSA contributions must stop once Medicare coverage begins, and Part A can be backdated up to six months when you claim Social Security after 65. Keep contributing right up to enrollment and part of the year can become an excess contribution with a penalty. Stop well before Medicare starts. The receipts you saved keep working forever; the contributions have a hard finish line. The full version is in The Account That Outlives the Bill.

Figures on this page are for tax year 2026 and were last verified 2026-07-25. Tax and benefit numbers change every year — check the current-year figure before acting on any of them. The 2026 Medicare IRMAA income tiers were not yet confirmed when this was written; where they matter, they are named but not stated as fact.

Related

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— Max

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