Health Savings Account Information

Power your high deductible health plan with an HSA.

Fuel your HSA with triple-tax advantages: deposits are deductible, growth is tax-deferred, and spending is tax-free for qualified health care expenses. HSAs are similar to a checking account, but you can use these funds for qualified medical expenses. You’ll deposit funds into the HSA just like you put money in your checking account. 

To take advantage of these benefits, you must be enrolled in a high deductible health plan. Then, you’ll own your account even if you change jobs, or retire in the future. Balances automatically roll over each year to provide you with flexible savings. HSAs have several other benefits too:

  • Make payments online or use a debit card
  • Account activity is viewable online and in your monthly statement
  • Make contributions when you want, and invest them how you want
  • Use funds whenever for qualified medical expenses
  • Employer’s contributions are not included in your gross income
  • Interest on the account is tax deferred

Want to learn more? Visit HSA Central to get started.

 

Health Savings Account FAQs

Contributing to your HSA

No. Each HSA is individually owned. However, your spouse may view information on your HSA if they are provided authorization to do so, and you may add them as a dependent to receive a debit card. 

Anyone! From your spouse to your employer, anyone can contribute to your HSA.

To contribute to your HSA, enroll in an employer payroll deduction, transfer funds from your bank account, or transfer HSA funds from another HSA account.

HSA Contribution Limits

Yes! Contribution limits are set by the IRS each year. View the chart below for 2020 or visit the IRS website for the current rates.

  2020 Limits
Maximum Contribution Limit Self-Only: $2,500
Family: $7,100
Catch-up Contribution (55+) $1,000

 

If you exceed these limits, you must report excess as gross income on your taxes and the excise tax will apply. However, you may contact us to remove excess contributions, but fees may apply. 

HSA Eligibility

These health plans are a healthcare option that sets a lower monthly premium and a higher deductible. Employers often pair a HDHP with a health savings account option.

Yes, “permitted insurance” is additional coverage that includes:

  • Specific disease or illness insurance
  • Accident, disability, dental care, vision care, and long-term care insurance
  • Pharmacy card or discount card
  • Insurance that has a fixed payment per day for hospitalization 

 

To fully qualify for an HSA, you must meet the following requirements:

  • You are covered by a qualified high deductible health plan (HDHP)
  • You are not enrolled in Medicare
  • You do not have health benefits under TRICARE
  • In the past three months, you have not received Veterans Administration (VA) benefits
  • You are not claimed as a dependent on someone else’s tax return
  • You are not covered by a general-purpose health care flexible spending account (FSA) or health reimbursement account (HRA). Limited-purpose FSAs and HRAs are permitted.
  • You don’t have any other health coverage, but you can have accident, disability, dental, vision or long-term care coverage or insurance that provides benefits for a specific disease or illness, a fixed amount for hospital stays or liability coverage, such as workers' compensation.

HSA Tax Advantages*

All of your contributions are completely tax-deductible, and employer contributions are excluded from gross income. In total, funds grow on a tax-deferred basis.

Yes! All contributions should be made before your yearly tax filing deadline.

Visit irs.gov to find a complete list of qualified health care expenses.

Yes! If the expense occurred after you opened the account, then you can pay yourself back with HSA funds. Keep copies of your receipts to check for qualified health care expenses.

Funds used to purchase non-qualified health care expenses will be considered as part of your gross income on your taxes. This income will be subjected to a 20 percent IRS excise tax. Funds after an account holder’s death, disability, or after age 65 will not receive the 20 percent penalty.

Unused HSA funds will rollover each year. You will not lose your money if it’s not spent.


Health Insurance Calculators

Our calculators are here to help with your health insurance planning.

*Consult a tax advisor for further information.