- Before-Tax* Contributions. Your contributions to the account are made on a before-tax basis. Contributions can be made up to the IRS limit, which the government sets once a year. The IRS limits for 2021 are:
- Employee Only—$3,600
- Employee + One or Employee + Family—$7,200
- Age 55 or Older—$1,000 more
- Tax-Free** Earnings. All earnings on the money in your account grow tax free.
- Tax-Free** Withdrawals. When you use the money to pay for qualified health care expenses, the withdrawals are tax free.
*Before-tax for federal purposes. State tax treatment may vary.
**Tax-free for federal purposes. State tax treatment may vary.