WHAT IS A HEALTH SAVINGS ACCOUNT?
A health savings account (HSA) is a savings account that allows you to make pre-tax contributions to pay for qualifying medical expenses.
To open an HSA, you must:
- Have a High Deductible Health Plan (HDHP)
- Not have any other major medical insurance coverage
- Not be enrolled in Medicare
- Not be claimed as a dependent by another individual
Contribution Limits for 2024:
| Coverage Type | Annual Limit | Monthly Limit |
|---|---|---|
| Single Coverage | $4,150.00 | $345.83 |
| Family Coverage | $8,300.00 | $691.67 |
Anyone 55 or older can contribute an extra $1,000 as a catch-up contribution.
WHAT ARE THE BENEFITS OF A HEALTH SAVINGS ACCOUNT?
TAX ADVANTAGES
HSAs allow you to make tax-deductible contributions and accumulate earnings tax free. Plus, distributions are also tax free if used for qualified medical expenses.
KEEP YOUR FUNDS
With an HSA there is no “use it or lose it” risk. Any HSA funds not used throughout the year will remain in the account earning interest tax-free until they are needed. HSA funds can also be used to save for future medical expenses and even retirement!
NO MINIMUM BALANCES OR FEES
Our HSA has no minimum balance requirement! Every dollar counts—whether you’re contributing a big or small amount. Plus, with no fees, you can watch your savings grow.
FLEXIBILITY
Your HSA account and all contributions are owned by you. The money is yours even if you change jobs, change medical plans, move, change your marital status, etc. You decide when and how to use the money in your account.
HSA FOR BUSINESSES
Whether your organization is big or small, rising healthcare expenses affect everyone. Health Savings Accounts (HSAs) offer a smart solution for your employees to manage these costs more effectively, with the added benefit of significant tax advantages.
If you offer High Deductible Health Plans (HDHP) and are seeking a new HSA provider, we might be the perfect fit for you!
Common Questions
An HDHP is a health insurance plan with a higher deductible than traditional insurance plans.
Qualified medical expenses include things like doctor’s visits, prescriptions, dental care and vision care. You can view a detailed list of qualified expenses on the IRS website.
Yes, but if you withdraw funds for non-medical expenses before age 65, you will owe income tax on the amount plus a 20% penalty. After age 65, you can use the funds for non-medical expenses without penalty, but you will still owe income tax.
You can access your HSA funds through online banking and can use the funds with a Visa® Health Savings Debit Card, by ordering Health Savings checks or withdrawing cash at any one of our 60 branch locations.
Nope! HSA funds roll over from year to year. There is no ‘use it or lose it’ rule, meaning the money you contribute can grow over time.
Your HSA moves with you wherever you go, which means you always have access to it.
Yes! Many HSA providers allow you to invest your funds in mutual funds, stocks or other investment options, allowing your money to grow tax-free over time.