Health Savings Account (HSA)

Overview of Health Savings Account

An HSA (Health Savings Account) is a tax savings strategy as well as a powerful tool to help pay for current and future health care costs. In our opinion, everyone should at least consider the HSA as an option when purchasing insurance.

Health Savings Account






2021 Contribution Limit



Individual HDHP = $3,600
($4,600 age 55 and over)

Family HDHP = $7,200
($8,200 age 55 and over)

Single Filer: MAGI
under $124,000.00
Married Filing Jointly: MAGI
under $196,000.00 If client does not qualify due to income

Withdrawals are tax and
after age 59 1/2 and once the account has been open for 5 years

Distribution Options

The ‘Open Enrollment’ period for health insurance plans currently runs from November 1st to December 15th. Outside the Open Enrollment Period, you generally can enroll in a health insurance plan only if you qualify for a Special Enrollment Period.

The reason why it’s so important to think about an HSA plan during the Open Enrollment Period is that if you don’t choose the right plan now, you can’t take a deduction and contribute to an HSA in that tax year.

Essentially, the HSA is much like an IRA and operates as tax-favored savings account for health care. You get a tax deduction when it goes in, it grows tax-free, and it comes out tax-free at ANY time, at ANY age, for a qualifying medical expense, which includes a long list of items. (See IRS Publication 502 for what qualifies as a valid/deductible medical expense).

The only requirement to qualify for one of these accounts is that you have to use
a qualifying high-deductible health insurance plan. Once you have the proper insurance, you can create an HSA account at Directed IRA and even self-direct it into alternative investments. For example, you can own rental property in your HSA!

Videos & Articles
on Roth IRA Accounts

The Power of the Health Savings Account (HSA)

The Health Savings Account is one of the most powerful pieces of a well-designed health care strategy…

Three Unique Benefits of Health Savings Accounts You Never Knew

HSAs (“Health Savings Accounts”) are growing in popularity as Americans are discovering significant tax savings with these accounts…