HSA myths vs. facts

Five things to check before open enrollment.

Myth: any high-deductible plan works

Fact: the plan must meet IRS HDHP rules, or be a bronze or catastrophic Exchange plan. Look for an HSA-eligible label.

Myth: I can pair an HSA with any FSA

Fact: a general-purpose health FSA generally disqualifies you. A limited-purpose FSA, like dental and vision, can work.

Myth: only my employer's contribution counts

Fact: every dollar from you, your employer or anyone else counts toward one annual limit: $4,500 self-only or $9,000 family in 2027.

Myth: I can spend it on anything

Fact: non-medical withdrawals are taxable and generally carry an extra 20% tax before age 65 (IRS Pub. 969).

Myth: Medicare never affects my HSA

Fact: you can't contribute once Medicare starts, and Part A can backdate up to six months. You can still spend what's saved.

Your next step

Ask yourself: could I cover the full deductible without borrowing? Our guide has a cost comparison. General education, not tax advice.