Fund Your Future with a 401(k) & Health Savings Account*

Last Updated December 14, 2023

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:

  1. 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.
  2. Contribute tax-free, up to annual IRS limits.
    • 401(k) — $23,000, plus a $7,500 catch-up contribution if you are age 50 or older in 2024
    • HSA — $4,150 for employee-only coverage and $8,300 for other coverage levels, plus a $1,000 catch-up contribution if you are age 55 or older in 2024
  3. Grow your accounts tax-free. Over time, money in your 401(k) and HSA can grow through tax-free earnings and compounding interest.
  4. 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.
  5. 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 Advantage or Kaiser HSA medical option.