A Health Savings Account (HSA) helps you take control of your health care expenses by allowing you to set aside tax free funds to pay for qualified medical expenses.
- No set-up fee
- $2.50 monthly service charge
(requirement of $2500 daily balance to waive monthly service fee)
- Can be opened and ongoing contributions can be made at any branch location
- HSA to HSA rollovers permitted
- Free HSA debit card
- HSA Checks
- As little as $1,000.00 can earn interest
Learn more about current rates and how to apply today.
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A Health Savings Account (HSA) is a tax-exempt trust or custodial account established exclusively for the purpose of paying or reimbursing qualified medical expenses of you, your spouse, and your dependents.
You are eligible for a regular HSA contribution if, with respect to any month, you:
If you are eligible, you can establish an HSA in much the same way you would establish an IRA-with a qualified trustee or custodian. Each year, you are responsible for determining your allowable annual HSA contribution and whether you have qualified medical expenses eligible for reimbursement with nontaxable HSA distributions.
- Are covered under a qualified high-deductible health plan (HDHP);
- Are not also covered by any other health plan that is not an HDHP (with certain exceptions for plans providing preventive care and limited types of permitted insurance and permitted coverage);
- Are not enrolled in Medicare; and
- Cannot be claimed as a dependent on another person's tax return.
Determining your eligibility to establish an HSA and determining your allowable contributions and distributions may require the guidance of a tax or legal professional. Your HSA custodian/trustee is not responsible for the determination of your allowable HSA contributions or whether you have qualified medical expenses.
If you meet the eligibility requirements for an HSA, you, your employer, your family members, and any other person (including nonindividuals) may contribute to your HSA. This is true whether you are self-employed or unemployed.
The maximum annual contribution amount is generally the lesser of 100 percent of the annual deductible under the qualified HDHP or a specified amount.*
Additionally, a "catch-up" contribution is available for eligible individuals who are age 55 or older by the end of their taxable year and have not enrolled in Medicare. The chart that follows shows the contribution limits.
Contributions to an HSA are fully deductible, the earnings grow tax deferred, and distributions for qualified medical expenses are tax free. Consult with your tax or legal professional for guidance.
You may deduct contributions made by anyone other than your employer as long as they do not exceed the maximum annual contribution amount. Employer contributions are not wages for federal income tax purposes.
The deadline for regular catch-up HSA contributions is your federal income tax return due date, excluding extensions, for that taxable year. The due date for most taxpayers is April 15.
HSA distributions used exclusively to pay for or reimburse qualified medical expenses incurred by you, your spouse, or your dependents are not included in gross income.
Additional Catch-Up Contribution Amount
Any other distributions are included in income unless rolled over. Distributions not used to pay for or reimburse qualified medical expenses or not rolled over are subject to an additional 10 percent tax unless made after your death, your disability, or your attainment of age 65.
HSA custodians/trustees are not required to determine whether HSA distributions are used for qualified medical expenses.
The qualified medical expenses must be incurred generally only after the HSA has been established.
Each year, your HSA custodian/trustee reports to the IRS on IRS Form 5498-SA the contributions made to your HSA and on IRS Form 1099-SA any HSA distributions you take. In addition, you file IRS Form 8889, Health Savings Accounts (HSAs), as part of your federal income tax return to show your HSA contribution and distribution activity.
If your spouse is the beneficiary of your HSA, the HSA becomes his/her HSA.
If your beneficiary is not your spouse, the HSA ceases to be an HSA as of the date of your death. If your beneficiary is your estate, the fair market value of the HSA as of the date of your death is included as income on your final income tax return. For other beneficiaries, the fair market value of your HSA is included as income for the recipient in the tax year of your death.
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