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Health Savings Account (HSA)

Invest in your health. NY & PA customers can save for qualified medical expenses with a tax-advantaged HSA.

An HSA is more than just a savings account

  • Tax-Advantaged
    Deduct contributions on your federal income tax return, reduce your federal income tax liability
  • Invest in Your Health
    Qualified medical expenses are tax-free
  • Easy to Manage
    Withdraw money from your HSA at any time and carry over your balance from year to year.
  • You Own Your HSA
    Take your HSA with you even if you change health plans or employers.

Health Savings Account Eligibility

You must be covered under a compatible high deductible health plan (HDHP) to be eligible to have an HSA. Generally, this means that you pay out of pocket for medical expenses incurred until your deductible is met before your plan coverage kicks in or your plan satisfies the IRS’s annual deductible and out-of-pocket expense requirements. The rules that define an HSA-compatible HDHP can be complicated so check with your insurance provider or employer to see if your health plan is HSA-compatible.


HSA-Compatible HDHP Amounts1

  Year Self-only coverage Family coverage
Minimum annual deductible 2023 $1,500 $3,000
2024 $1,600 $3,200
Maximum out-of-pocket expenses 2023 $7,500 $15,000
2024 $8,050 $16,100

NOTE: Self-only coverage covers only an individual. Family coverage covers an individual and a spouse  and/or one or more dependents.

In addition to being covered under an HSA-compatible HDHP, you cannot be

  • covered by a non-HDHP (with limited exceptions),
  • enrolled in Medicare
  • eligible to be claimed as a dependent on another person’s tax return.


Health Savings Account Contributions

Contributions into a C&N HSA can be made in any amount throughout the year until your tax return due date (generally April 15) for that year, not to exceed your annual limit. Any contributions made on your behalf by your employer or anyone else are included in your one annual limit. Use the chart below to see how much can be contributed to an HSA each year. 


HSA Contribution Amounts

Year Self-only coverage Self-only 55+ Family coverage Family 55+
2023 $3,850 $4,850 $7,750 $8,750
2024 $4,150 $5,150 $8,300 $9,300

Those who are 55+ can make an additional “catch-up” contribution of up to $1,000. If you are not eligible for the entire year, you can still contribute the maximum contribution amount if you remain HSA-eligible throughout a 13-month “testing period.” If you do not remain HSA-eligible during the testing period, then the annual limit is prorated to the number of months that you were eligible.

If both you and your spouse have family coverage and are HSA-eligible, one annual family contribution limit applies to both of you and may be split between your HSAs in any way you choose. Note that if both you and your spouse are each eligible for a catch-up contribution, the catch-up amounts cannot be combined into one HSA.

HSA contributions made by yourself and your spouse (not those made by your employer) can be deducted on your taxes.


Health Savings Account Distribution

Any funds withdrawn from your HSA for qualified medical expenses will not be subject to income tax or penalty tax. Qualified medical expenses generally include most medical, dental, and vision care expenses not covered by insurance that are incurred by you, your covered spouse, or your dependents after your HSA is opened. IRS Publication 502, Medical and Dental Expenses, contains a partial list of qualified medical expenses.

HSA distributions that are not used for qualified medical expenses are subject to ordinary income tax and, if taken before age 65, a 20% penalty tax (unless the HSA assets are distributed after you become disabled or die).

You may want to visit with a competent tax advisor before making HSA contributions or taking HSA distributions.

1Subject to annual cost-of-living adjustments.

2As long as you cannot be claimed as a dependent on another person’s tax return.

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