13 best HSA providers for employers to consider in 2027

Quick answer: The best HSA providers for 2027 are Forma, Fidelity, HealthEquity, HSA Bank, Lively, Optum Bank, WEX, Inspira Financial, UMB, Bank of America, Voya, Saturna, and First American Bank.

Health Savings Accounts have quietly become one of the largest pools of employee money an employer touches. Devenir counted nearly $174 billion across 41.7 million accounts at the end of 2025, and most of that money sits in cash earning very little, administered by whichever vendor came bundled with the health plan years ago.

That bundled choice is now a problem for benefits teams. Employees compare their HSA to the investing apps on their phones and to the lists of the best HSA accounts they find online, finance wants the employer contribution to show up in retention, and the 2027 limits have climbed again, so a provider chosen for convenience in 2019 is costing engagement in 2027.

The 13 HSA providers reviewed here are the ones employers are actually evaluating this renewal season, ranked for benefits teams rather than individual savers. Each entry covers what the provider does well, its pros and cons, and the kind of employer it fits, with the fee and investment data that most HSA roundups leave out.

Key takeaways

• The best HSA providers for 2027 compete on four things employers can measure: account fees, the investment threshold, the quality of the employer dashboard and payroll feed, and whether FSAs, commuter, and COBRA can run on the same platform.
• HSA assets reached nearly $174 billion in 2025 according to Devenir, yet EBRI found only 18% of accountholders invest, so provider choice directly shapes whether employees build long-term savings or leave cash idle.
• The 2027 contribution limits rise to $4,500 for self-only and $9,000 for family coverage, which makes employer contribution design and payroll integration more valuable than ever.
• HSAs are U.S.-only accounts, so employers with global workforces need a provider that pairs them with lifestyle benefits that work everywhere else.
• Forma leads this list because it administers HSAs, FSAs, Commuter, and COBRA on the same platform as Lifestyle Spending Accounts and HRAs, with first-dollar ETF investing and human support. Schedule a demo today to plan your 2027 pre-tax program.

What is an HSA?

A Health Savings Account is a tax-advantaged account that employees enrolled in a qualifying high-deductible health plan use to pay for qualified medical expenses now or save for them later. Employers comparing providers still need a working grasp of HSA fundamentals, because the account's rules decide which provider features matter.

The account's value rests on a few features that no other benefit combines:

• HDHP requirement: Only employees enrolled in an HSA-qualified high-deductible health plan, with no disqualifying coverage, can contribute.
• Triple tax advantage: Contributions reduce taxable income, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
• Qualified expenses: Deductibles, copays, prescriptions, dental and vision care, and certain preventive services all qualify, and the list is set by the IRS rather than the provider.
• Employee ownership: The account belongs to the employee and moves with them between employers and health plans, which is why HSA assets keep compounding across careers.
• HSA contribution limits 2027: The IRS set 2027 limits at $4,500 for self-only and $9,000 for family coverage under Rev. Proc. 2026-24, with a $1,000 catch-up for employees 55 and older. The full 2027 HSA limits, including HDHP deductibles, are already published for planning.
• No use-it-or-lose-it rule: Balances roll over indefinitely, and after age 65 funds can be withdrawn for any purpose with ordinary income tax but no penalty.
• Investing: Most providers let employees invest balances above a threshold in mutual funds, ETFs, or a brokerage window, which is where provider quality diverges most.

One wrinkle for 2026 and 2027: the One Big Beautiful Bill Act made bronze and catastrophic plans HSA-eligible and permanently allowed first-dollar telehealth without affecting eligibility, which Morningstar estimates could add three to four million HSA participants. 

Health Savings Accounts are also sometimes confused with Healthcare Spending Accounts, a different, employer-funded arrangement. Employers weighing an HSA or HRA for a given population should note that only the HSA is employee-owned and portable.

What HSA providers do for employers

For an employee, health savings account providers are simply the custodians that hold their money. For an employer, an HSA provider is the vendor that opens accounts at scale, moves payroll contributions, issues cards, substantiates spending, reports to benefits teams, and ideally runs the FSA, commuter, and COBRA programs alongside it so eligibility data lives in one place.

Two roles sit behind every HSA, and they are not always the same company. The custodian or trustee, usually a bank, holds the funds, while HSA administrators run the employer-facing platform. Several providers on this list act as both, and others white-label a custodian, which matters when employees want to transfer balances later.

The consolidation question matters too. Forma's 2026 global lifestyle benefits benchmark report found that 97% of employers have centralized multiple pre-tax accounts on one platform, while only 21% have brought pre-tax and post-tax benefits together.

13 best HSA providers at a glance

The table summarizes who each of the 13 HSA account providers serves best and what it charges, drawing on provider disclosures and Morningstar's annual HSA assessments. Use it to narrow the field before reading the detailed reviews.

The 13 best HSA providers for 2027

Every provider on this list was confirmed live in October 2026, and ownership changes since this list was last published are noted. Rankings weigh fees, investment access, employer tools, and how well the HSA fits into a broader benefits program, since that last factor is what separates the top HSA providers from an account employees forget.

1. Forma

Forma administers HSAs as part of a pre-tax accounts suite that includes Healthcare, Limited Purpose, and Dependent Care FSAs, Commuter benefits, and COBRA, on the same platform where employers run Lifestyle Spending Accounts and HRAs. Benefits teams get one eligibility feed, one invoice, and reporting across every account, while employees get the same app and support team they use for every other Forma benefit.

That consolidation is the reason Forma leads the list. Most HSA providers run the HSA well and little else, so employers end up with separate vendors for lifestyle benefits, HRAs, and recognition. Forma keeps the pre-tax accounts compliant under their own rules while the post-tax side runs as dedicated benefits wallets next to them, which is how Tripadvisor runs its HSA alongside a global Lifestyle Spending Account.

Features

Forma's HSA is built to remove the friction that leaves most HSA balances uninvested and most pre-tax programs scattered across vendors. Benefits teams choose from customizable spending accounts, including HSAs, FSAs, HRAs, and Lifestyle Spending Accounts, and five capabilities carry most of the weight: investing, spending, administration, global reach, and security.

HSA investing from the first dollar

Employees can invest HSA balances in a selection of ETFs without leaving their Forma account, with no investment threshold to clear first. Investing is presented in the same interface as spending, which matters because EBRI found only 18% of accountholders invested in 2024, largely because investing lives behind a separate portal at most providers.

Spending and claims

The Forma Card works across pre-tax accounts with mobile payments and auto-adjudication, so most eligible purchases clear without a receipt request. Claims that need review go to Forma's human support team, available around the clock by email and live chat, rather than a ticket queue.

Lifestyle funds can also be spent in the Forma Store, a curated marketplace of discounted products and services where employees buy without a card or receipt. The interface is the same across every account, which keeps the experience consistent as a program adds accounts or countries.

Administration and reporting

Benefits teams configure contributions, eligibility, and account rules through click-not-code settings rather than IT tickets, and payroll feeds carry contributions on a defined cadence. Claims administration, member support, and vendor management sit with Forma, which is the account management workload most HSA managers want off their desk.

A single access point for HSA, FSA, and lifestyle funds also removes the usage barriers that leave budgets unspent, so HSA budget utilization improves without extra communication campaigns. Dashboards report engagement (the share of eligible employees who open and use an account) separately from utilization (the share of allocated dollars spent), which is the distinction finance needs for forecasting across HSAs, FSAs, and lifestyle wallets.

One platform for pre-tax and post-tax benefits

HSAs are U.S. accounts, so a global employer cannot offer them everywhere. Forma pairs them with Lifestyle Spending Accounts and configured benefits wallets that run in 110+ countries with local currency and cost-of-living adjustments. That flexible benefits platform model is how a global employer delivers geographic equity instead of geographic uniformity, so international employees are not left with less than their U.S. colleagues.

Enterprise-grade security

Forma holds SOC 2 Type II, achieved ISO 27001 certification in March 2026 with zero nonconformities, is GDPR compliant, and meets WCAG accessibility standards. Those standards are what let employers in regulated industries such as financial services, healthcare, and insurance run Forma without exception requests. Integrations with HRIS and payroll run through API connectors, SCIM provisioning, or file-based feeds.

Pros of Forma

• HSAs, FSAs, Commuter, and COBRA next to Lifestyle Spending Accounts and HRAs in one unified employee experience
• ETF investing with no minimum balance, inside the same interface as spending
• Human support available around the clock for members and administrators
• Engagement and utilization reported separately across every account type
• Benefits wallets that extend the program to employees in 110+ countries where HSAs do not apply
• SOC 2 Type II, ISO 27001, GDPR, and WCAG standards

Cons of Forma

• Built for employers rather than individual savers, so there is no retail HSA to open directly
• Custom pricing reflects a premium platform, so a very small team that only needs an HSA may find a lighter tool sufficient
• The HSA investment menu is ETF-based rather than a full self-directed brokerage

Forma fits employers that want the HSA to be one part of a connected benefits program rather than another standalone vendor. Planning pre-tax accounts for the 2027 plan year? Schedule a demo today and see how HSAs run alongside everything else on Forma.

2. Fidelity Investments

Fidelity has held Morningstar's top HSA ranking every year from 2019 through 2025, and the reasons have not changed. Individual accounts carry zero fees and zero minimums, employees can invest from the first dollar in stocks, ETFs, and mutual funds, and uninvested cash sits in a money market fund that was yielding 3.40% in September 2026 rather than a near-zero bank rate.

For employers, Fidelity's HSA lives inside NetBenefits next to the 401(k), which makes it the natural choice for companies already using Fidelity for retirement. Employer-sponsored accounts carry a recordkeeping fee of up to $48 a year that the employer can absorb or pass through, and the Fidelity Go managed option charges no advisory fee below $25,000.

Pros of Fidelity

• Morningstar's top-rated HSA for seven consecutive years, High for both spending and investing
• No account fees or investment minimums for individual accounts
• Full self-directed brokerage plus a low-cost managed option, in an intuitive interface
• Money market cash yield instead of a bank deposit rate

Cons of Fidelity

• Uninvested cash is not FDIC insured
• Employer accounts carry a recordkeeping fee
• Runs HSAs and retirement, so FSAs, COBRA, and lifestyle benefits need another vendor

3. HealthEquity

HealthEquity is the largest HSA administrator by members, with more than 9.9 million HSAs and over 50,000 employer organizations. Its scale shows in the breadth of what it administers: FSAs, HRAs, COBRA, commuter benefits, Lifestyle Spending Accounts, and health payment accounts all run on the same platform.

Investing runs through 33 low-cost Vanguard mutual funds once a balance clears the $500 threshold, with optional advisory services for members who want automated portfolio management. Morningstar rates HealthEquity Above Average for both spending and investing, with total annual fees around $72.

Pros of HealthEquity

• Largest HSA provider, with deep compliance resources for regulated industries
• Every pre-tax and COBRA account type on one platform
• Vanguard fund lineup with automatic investing and rebalancing
• Transparent, published fee schedule
• Above Average Morningstar ratings on both spending and investing

Cons of HealthEquity

• $500 investment threshold and a $25 transfer-out fee
• Account fees are higher than the no-fee providers
• Member reviews are weaker than its scale would suggest

4. HSA Bank

HSA Bank has been one of the industry's original administrators for more than 20 years, and its ownership changed in 2026: Santander completed its acquisition of Webster Financial in August, so HSA Bank now operates as a division of Santander Bank, N.A. The platform itself continues unchanged, administering HSAs for more than 3 million accountholders and 30,000 employer groups.

The account menu is among the broadest in the market, covering FSAs, HRAs, Lifestyle Spending Accounts, commuter benefits, COBRA, emergency savings accounts, and tuition reimbursement accounts. Investing opens above a $1,000 cash balance through a brokerage window and guided fund options, and Morningstar rates the investing experience Above Average.

Pros of HSA Bank

• Two decades of HSA administration backed by a major bank
• Broad account coverage, including emergency savings and tuition accounts
• Above Average Morningstar investing rating with brokerage access
• User-friendly web platform with a mature employer resource center and decision-support tools

Cons of HSA Bank

• $1,000 investment threshold and a $25 account closing fee
• Annual fees around $50 per Morningstar
• A 2026 ownership change worth a direct question about roadmap

5. Lively

Lively built its reputation on transparent pricing. Individual accounts are free, employer accounts cost $0 per employee per month with a $200 monthly minimum, and investing starts from the first dollar through either a Schwab self-directed brokerage or a Devenir guided portfolio.

Devenir's 2024 year-end and 2025 midyear reports named Lively the fastest-growing provider among the top ten custodians, and its app ratings lead the category. The one fee to know is a $24 annual investment access charge on self-directed accounts with cash balances below $3,000, which Morningstar factors into its Average rating.

Pros of Lively

• Free for individuals and transparent, low-cost pricing for employers
• First-dollar investing with a choice of self-directed or guided portfolios
• Highest member review scores among major providers, with clear spending insights in the app
• FSA, HRA, LSA, commuter, and COBRA accounts also available

Cons of Lively

• $24 annual fee on self-directed investing below $3,000 in cash
• $200 monthly employer minimum makes small groups relatively expensive
• Average Morningstar investing rating, behind the top-tier providers

6. Optum Bank

Optum Bank, part of UnitedHealth Group's Optum Financial, is one of the largest HSA custodians by account count and the default option for many employers on UnitedHealthcare plans. Accounts are administered by Optum Financial or ConnectYourCare, and employees can invest in a mutual fund lineup once they meet the account's threshold.

Optum's strength is integration with the health plan: claims data, provider payments, and the HSA sit in one place for UnitedHealthcare members. Its weakness, per Morningstar, is cost and the spending experience, which rates Below Average with total fees around $105 a year.

Pros of Optum Bank

• Tight integration with UnitedHealthcare plans and Optum services
• Large custodian with full employer portal and partner programs
• Educational resources, eligibility tools, and flexible investment options for members

Cons of Optum Bank

• Highest annual fees of the providers Morningstar evaluated
• Below Average spending experience rating
• Less compelling for employers outside the UnitedHealthcare ecosystem

7. WEX

WEX states that one in three HSAs run on its platform, which reflects its position as the administration layer behind many TPAs and benefits platforms as well as a direct employer option. Employees get one debit card, one online account, and one app across HSA, FSA, HRA, and commuter benefits.

Two employer features stand out. Advanced Funding lets an employer front contributions that employees repay through payroll, and bulk transfer tools move HSAs between custodians for complex organizations. Investing runs through a self-directed brokerage with access to more than 5,000 mutual funds and other options.

Pros of WEX

• Massive scale and a mature benefits consolidation platform
• Advanced Funding and bulk custodian transfer tools built for large employers
• 5,000+ investment options through a brokerage window
• Mobile app with full investment management and barcode eligibility scanning

Cons of WEX

• Pricing is custom and often delivered through a TPA rather than directly
• Investment threshold and fees vary by plan configuration
• Lifestyle benefits are not a core strength

8. Inspira Financial

Inspira Financial is the company formerly known as PayFlex, rebranded in 2024, and it administers consumer-directed benefits for more than 90,000 businesses. Its health benefits suite covers HSAs, HRAs, FSAs including dependent care and limited purpose, commuter benefits, Lifestyle Spending Accounts, emergency savings funds, and COBRA.

Inspira makes sense for employers that ran PayFlex HSAs and want continuity, and for mid-market groups that want every account type under one administrator. Employees searching for "PayFlex HSA" still land here, which is why it belongs on a 2027 list.

Pros of Inspira Financial

• Full consumer-directed benefits suite including COBRA and emergency savings
• 90,000+ business clients and PayFlex's long administration history
• Lifestyle Spending Account support alongside pre-tax accounts

Cons of Inspira Financial

• Fee and investment details require a quote
• Rebrand still causes confusion for employees with PayFlex cards
• Employer reporting is less visible than at the platform-first providers

9. UMB Healthcare Services

UMB is a custodial partner as much as a direct provider, and the business that absorbed The HSA Authority accounts several years ago. UMB Healthcare Services, a division of UMB Bank, holds nearly 1.5 million HSAs totaling more than $3.75 billion in assets and has more than 5.8 million healthcare cards in circulation, many of them issued through insurance carriers, TPAs, and software platforms that white-label UMB's custody.

For employers that work with UMB directly, Morningstar rates the spending experience Above Average with total fees around $36 a year, among the lowest of the bank-based providers. Investing is Average, with a fund menu available above a cash threshold.

Pros of UMB

• Low annual fees and an Above Average spending experience
• Stable bank custodian with 110 years of history and personalized customer service
• Extensive education and onboarding materials for accountholders
• Supports HSAs, FSAs, HRAs, and commuter accounts for employers and partners

Cons of UMB

• Investment experience rated Average by Morningstar
• Fees and thresholds vary depending on which partner platform sits on top
• Fewer employer-facing engagement tools than platform-first providers

10. Bank of America

Bank of America offers its HSA for Life alongside employer-sponsored FSAs and HRAs, with investments held through a Merrill-curated mutual fund menu. Consumers pay no annual maintenance fee, and employers that bank with Bank of America often add the HSA for the relationship, the branch network, and the financial tools that sit beside it.

Morningstar rates the investing side Above Average and the total fees low at around $30 a year, but the spending experience rates Below Average, which is where employees spend most of their time.

Pros of Bank of America

• Low annual fees and an Above Average investing rating
• Merrill-selected investment menu with institutional oversight
• Nationwide branch and ATM network with no annual maintenance fee for consumers

Cons of Bank of America

• Below Average Morningstar spending experience
• Employer FSAs and HRAs are claims administration only
• No lifestyle or commuter accounts on the same platform

11. Voya Financial

Voya positions its HSA as the health half of a retirement conversation. Employees who already have a Voya 401(k) get one connected view across retirement and health accounts, a fund menu curated by Voya Investment Management, and automatic investment sweeps above a designated threshold.

Voya also administers FSAs with a three- to five-day average claims turnaround, commuter benefits, HRAs, COBRA, and direct bill, which makes it a credible single administrator for employers already in its retirement ecosystem.

Pros of Voya

• Connected experience with Voya retirement plans
• Full pre-tax account suite plus COBRA and direct bill
• Receipt capture and eligibility scanner in the app

Cons of Voya

• Most valuable only for employers already using Voya for retirement
• Investment threshold must be cleared before funds are invested
• Fees are quote-based

12. Saturna Capital

Saturna runs one of the most transparent HSAs in the market, and Morningstar rates it Above Average on both spending and investing. Employers choose a peg balance of $0 or $500 that stays in cash, and new payroll contributions can be invested immediately rather than accumulating in a deposit account.

Pricing is unusually clear. Saturna charges no asset-based fee on its own no-load funds, 0.30% on other funds with breakpoints as plan assets grow, and no fee on the $500 peg plan, with the HSA lineup able to mirror the employer's 401(k) menu. Its ethical, socially responsible, and halal fund options remain a draw for employers with specific workforce priorities, and portfolios can be customized to the plan.

Pros of Saturna

• Above Average Morningstar ratings on spending and investing
• Payroll contributions invested immediately, with no fee on Saturna funds
• Fund lineup can mirror the 401(k) menu

Cons of Saturna

• Smaller provider with far less search demand and brand recognition
• 0.30% asset fee on non-Saturna funds and a $25 closure fee
• No FSA, commuter, or COBRA administration

13. First American Bank

First American Bank earned top marks from Morningstar as the highest-rated community bank on its list, paying the highest cash interest rate on balances above $100,000 of all eleven providers evaluated. Consumers pay no monthly or annual maintenance fee, and investments run through mutual funds and a Schwab brokerage window with a custodial fee on invested balances.

The bank supports HSAs, FSAs, HRAs, and qualified transportation accounts for employers, which suits smaller groups that want a relationship-driven administrator rather than a national platform.

Pros of First American Bank

• Highest cash interest rate on large balances among Morningstar's evaluated providers
• No monthly or annual fee for consumers
• Supports FSAs, HRAs, and commuter accounts, with self-service online tools

Cons of First American Bank

• Average Morningstar investing rating despite the strong spending score
• Custodial fee on invested balances
• Limited scale and employer tooling compared with national providers

Why the right HSA provider matters more in 2027

Employers used to treat the HSA as a line on the health plan contract. Three shifts have turned choosing the best health savings account into a provider decision in its own right, and each one shows up in the numbers.

Balances are large and mostly idle

Devenir reports HSA investment assets reached nearly $85 billion at year-end 2025, up 33%, yet only about 10% of accounts hold invested dollars. EBRI's August 2026 analysis found the average year-end balance reached a record $5,532 in 2024 with just 18% of accountholders investing, which means the provider's investment threshold and interface decide whether employer contributions grow or sit still.

Employers are funding more of the account

PSCA's 2025 survey of nearly 600 employers found that three-quarters of employers contribute to employee HSAs, with 20% of participants now investing and an average balance of $6,489. Employer money deserves an employer-grade platform: payroll feeds that post correctly, dashboards that show participation, and a card that does not generate substantiation tickets.

Health costs are pushing more employees into HDHPs

Mercer projects health benefit costs will rise 8.2% in 2027 after cost-cutting changes, and SHRM's 2025 survey found 61% of employers already offer HSAs. As more employees land on high-deductible plans, the HSA becomes the account that softens the deductible, and Fidelity's 2026 estimate that a 65-year-old needs $185,500 for retiree health costs is the number that turns it into a savings vehicle.

How to choose the best HSA provider for your organization

These criteria are ordered by how much they change cost and engagement, and they condense the ten must-have HSA vendor features into the questions worth asking HSA vendors in a finalist meeting.

Fee structure

Ask HSA companies for the full fee schedule: monthly or annual maintenance, investment access, closure and transfer-out, card replacement, and paper statement charges. Morningstar's assessments put total annual fees anywhere from $0 at Fidelity to around $105 at Optum, and the difference compounds across thousands of accounts.

Investment threshold and options

The threshold is the number that decides whether employees ever invest. Providers range from first-dollar investing at Forma, Fidelity, and Lively to $500 at HealthEquity and $1,000 at HSA Bank, and the menu ranges from a curated fund list to a full brokerage window. The best HSA account for a workforce with modest average balances is the one employees can start investing in on day one, whatever the size of the brokerage window.

Employer administration and integrations

Confirm how contributions reach the custodian (API, SCIM, or file feed), how mid-year eligibility changes are handled, and whether the dashboard reports engagement separately from spend. A healthy HR system integration is what keeps contributions posting on schedule, and the same questions apply to any pre-tax vendor.

Account breadth and consolidation

Decide whether the provider should also run Flexible Spending Accounts, commuter, COBRA, and lifestyle benefits. Running pre-tax and post-tax accounts on one platform is the direction larger employers are heading, because benefits consolidation removes duplicate eligibility feeds, invoices, and logins. Employers that pair an HSA with a limited-purpose FSA should also check the HSA-FSA compatibility rules carry over.

Employee experience and support

Evaluate the app, the card's auto-substantiation rate, ATM or transfer access to cash, and whether members reach humans by phone, email, and live chat. The same evaluation discipline applies when you evaluate well-being platforms or compare tuition support platforms, since each adds a vendor employees must learn.

Educational resources

Ask what the provider does to teach employees the triple tax advantage, the investment option, and the difference between spending now and saving for later. Guides, webinars, decision-support calculators, and a support team that can answer HSA questions all raise participation, and the providers with the strongest education tend to show it in their investing rates.

Global workforce fit

HSAs stop at the U.S. border. Employers with international staff should ask how the provider extends benefits to everyone else, which usually means pairing the HSA with Lifestyle Spending Accounts or personalized benefits platforms and managing multi-country benefits compliance for the non-U.S. population.

Switching costs

If you are replacing an incumbent, ask about trustee-to-trustee transfer support, run-out handling for the FSA that usually moves at the same time, and the communication plan that transitioning pre-tax accounts requires. Brokers who have run several transitions can usually tell you which of those three the incumbent will make hardest.

Why Forma is the best HSA provider for employers in 2027

Across fees, investment access, employer tools, and account breadth, most providers on this list run an excellent HSA and stop there, which leaves benefits teams managing a second vendor for FSAs, a third for COBRA, and a fourth for lifestyle benefits. Forma runs HSAs, Healthcare and Dependent Care FSAs, Commuter, and COBRA on the same platform as Lifestyle Spending Accounts, HRAs, and Rewards and Recognition.

Employees invest HSA balances in ETFs from the first dollar, pay with a card that auto-adjudicates most pre-tax purchases, and reach human support around the clock. 

Benefits teams get one eligibility feed, one invoice, and engagement and utilization reported separately, and with nearly 1 million members across 110+ countries, Forma turns pre-tax and post-tax administration into a straightforward, data-backed process. You can read more statistics like the 97% pre-tax consolidation figure in our 2026 global lifestyle benefits benchmark report. 

Ready to bring your HSA into 2027? Schedule a demo today and see every account on one platform.

Frequently asked questions about HSA providers

How do you open an HSA account?

You open an HSA account either through your employer's chosen provider during benefits enrollment or directly with a bank, credit union, brokerage, or HSA administrator. To be eligible you must be enrolled in a qualifying high-deductible health plan, have no other disqualifying coverage, not be enrolled in Medicare, and not be claimed as a dependent.

How does an HSA account work?

An HSA account works by letting an employee contribute pre-tax dollars, usually through payroll, that can be spent tax-free on qualified medical expenses or invested for later. Employers can contribute too, the balance rolls over every year, and the account stays with the employee across jobs, with unspent funds withdrawable for any purpose after age 65 with ordinary income tax.

How does an HSA differ from a Flexible Spending Account?

An HSA requires a high-deductible health plan, belongs to the employee, moves between jobs, allows investing, and rolls over indefinitely. A Flexible Spending Account is employer-owned, usually ends when employment ends, has a lower annual limit, and typically forfeits unused funds beyond a small carryover or grace period. Many employers offer a limited-purpose FSA alongside an HSA.

What are the HSA contribution limits for 2027?

The HSA contribution limits for 2027 are $4,500 for self-only coverage and $9,000 for family coverage, with an additional $1,000 catch-up contribution for accountholders aged 55 and older. The 2027 HDHP minimum deductibles are $1,750 for self-only and $3,500 for family coverage, and the limits include both employee and employer contributions.

Can you have more than one HSA account?

Yes, you can have more than one HSA account at the same time, for example one at your employer's provider and one at a provider with better investment options. The IRS contribution limit applies to the combined total across all your HSAs, and you can move funds between accounts using a trustee-to-trustee transfer with no limit on frequency.

What is an HSA custodian?

An HSA custodian is the financial institution, typically a bank, credit union, or trust company, that legally holds HSA funds on the accountholder's behalf. The custodian can be the same company as the HSA administrator that runs the employer platform and card, or a separate partner working behind it, which matters when employees want to transfer balances to another provider.

Is an HSA worth it?

An HSA is worth it for most people on a high-deductible health plan who can cover the deductible, because contributions, growth, and qualified withdrawals are all tax-free and the balance never expires. Invested balances can function as a retirement account, since funds withdrawn after age 65 for any purpose carry ordinary income tax but no penalty.

This article is for informational purposes. Forma is not engaged in the practice of law. Nothing contained herein is intended as tax or legal advice nor to replace tax or legal advice from counsel. If you need tax or legal advice, please consult with counsel or a certified tax professional.