Fund Your Future with a 401(k) & Health Savings Account*
Last Updated December 14, 2022
A 401(k) and Health Savings Account (HSA) are tax-advantaged accounts that can work together to help you save more for retirement. Here are five reasons you should save with one or both accounts:
- Reduce your taxable income. Money you deduct from your paycheck to contribute to your 401(k) and HSA lowers your taxable income, so you pay less income tax now.
- Contribute tax-free, up to annual IRS limits.
- 401(k) — $22,500, plus a $7,500 catch-up contribution if you are age 50 or older in 2023
- HSA — $3,850 for employee-only coverage and $7,750 for other coverage levels, plus a $1,000 catch-up contribution if you are age 55 or older in 2023
- Grow your accounts tax-free. Over time, money in your 401(k) and HSA can grow through tax-free earnings and compounding interest.
- Keep your money. Money in your 401(k) and HSA is always yours (even if you change jobs) and rolls over year after year, helping you build your retirement nest egg.
- Retire with confidence. When you retire, you can make taxable withdrawals from your 401(k) (if you contributed pre-tax dollars). HSA withdrawals for qualified health care expenses are always tax-free, even before you retire.
*You are eligible to participate in an HSA if you are enrolled in the HSA Value, HSA Select, HSA Advantage or Kaiser HSA medical option.