Preparation: the Best Medicine
A Health Savings Account (HSA) is a tax-advantaged, interest-bearing* medical savings account available to U.S. taxpayers enrolled in a High Deductible Health Plan (HDHP).
Health Savings Account funds may be used to pay for qualified medical expenses at any time without federal tax liability or penalty. Beginning in 2011, over-the-counter (OTC) medications cannot be purchased with HSA funds without a doctor’s prescription.
The funds contributed to an account are not subject to federal income tax at the time of deposit. Unlike flexible spending accounts (FSAs), funds roll over and accumulate year-to-year if not spent. Health Savings Accounts are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRAs) that are an alternate tax-deductible source of funds paired with either HDHPs or standard health plans.
Withdrawals for non-medical expenses are treated very similarly to those in an Individual Retirement Account (IRA) in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier.
Avoid a $5.00 service fee every month by maintaining a balance of $300 or more.
Health Savings Account (HSA) FAQs
How do I make a contribution to my HSA?
You can make contributions to you HSA through one of the following methods:
- deposited at one of our locations
- mail a check to us
- sent to electronically via an Automated Clearing House (ACH) file (direct deposit or electronic transfer)
When making a deposit by mail please make sure to include whether you want the contribution made for the current tax year or prior tax year (if being sent in between January 1 to April 15).
Contributions can be made for the prior tax year up to April 15 (or the adjusted tax filing deadline for individuals).
Can I add a beneficiary to my HSA?
Yes, as part of the account opening process for a Health Savings Account (HSA) you will be asked to name a beneficiary to receive the funds upon your death. You may name multiple beneficiaries and you may choose what percentage of the account each beneficiary will receive. You are also able to name contingent beneficiaries. Contingent beneficiaries receive the funds in the account if ALL of your primary beneficiaries pre-decease you.
How do I use an HSA debit card?
You can use your debit card that goes with an HSA account the same as you would use one with a regular checking account. Just make sure that you are using the card to pay for qualified medical expenses in order to avoid IRS penalties.
When is the HSA contribution deadline each year?
Contributions to a Health Savings Account (HSA) can be 'carried back' to the prior tax year up to the tax filing deadline for the individual, typically April 15 of each year. For questions specific to HSAs, please contact a Personal Banker at any of our full-service offices and someone will be happy to assist you.
Open a Health Savings Account (HSA)
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