Health Savings Accounts (HSAs) are tax-advantaged medical savings accounts available to United States taxpayers who are enrolled in a High Deductible Health Plan (HDHP). HSAs are owned by the individual, differentiating them from company-owned Health Reimbursem*nt Arrangements (HRAs) that are an alternate tax-deductible source of funds paired with HDHPs. And, unlike a Flexible Spending Account (FSA), HSA funds roll over and accumulate year over year if not spent, with the ability to earn tax-free interest on the account. HSA funds may be used to pay for qualified medical expenses at any time without federal tax liability.
For eligible individuals covered by a qualified high deductible healthcare plan (HDHP), an HSA offers a number of benefits. Money that would otherwise be lost to high premiums could be invested in a tax-free, interest-bearing HSA. For those with higher medical expenses, an HDHP combined with an HSA still may provide overall cost savings as compared to a traditional plan with higher premiums and out of pocket maximums.Learn moreabout the benefits of having an HSA oruse our health plan comparison calculatorto determine if an HSA is right for you.
If you have a qualified High Deductible Health Plan (HDHP) - either through your employer or one you've purchased on your own - chances are you can open an HSA. Additionally:
You must have a valid Social Security Number and a primary residence in the U.S.
You cannot be covered by any other type of health plan, including Medicare Part A or Medicare Part B.
You cannot be covered by TriCare.
You cannot have received medical benefits from Veterans Administration for any non-service-connected disabilities at any time during the previous three months.*
You cannot be claimed as a dependent on another person's tax return (unless it's your spouse).
You must be covered by the qualified HDHP on the first day of the month.
*Title 38 of the United States Code, Section 101(17) defines "non-service-connected" as, with respect to disability, that such disability was not incurred or aggravated in line of duty in the active military, naval, or air service.
If you have a qualified High Deductible Health Plan (HDHP) - either through your employer or one you've purchased on your own - chances are you can still contribute to your HSA with HSA Bank.* Additionally:
You must have a valid Social Security Number and a primary residence in the U.S.
You cannot be covered by any other type of health plan, including Medicare Part A or Medicare Part B.
You cannot be covered by TriCare.
You cannot have received medical benefits from Veterans Administration for any non-service-connected disabilities at any time during the previous three months.**
You cannot be claimed as a dependent on another person's tax return (unless it's your spouse).
You must be covered by the qualified HDHP on the first day of the month.
*The content herein is provided for informational purposes. HSA Bank does not provide tax or legal advice. Please refer to IRS guidance, includingIRS Publication 969, for additional details.
**Title 38 of the United States Code, Section 101(17) defines "non-service-connected" as, with respect to disability, that such disability was not incurred or aggravated in line of duty in the active military, naval, or air service.
A high deductible health plan (HDHP) is a health insurance policy that features higher deductibles and lower premiums than traditional insurance plans. HDHPs can be combined with a health savings account or a health reimbursem*nt arrangement that allows for payment ofqualified out-of-pocket medical expenseson a pre-tax basis.
If you are covered by another health plan (such as through your spouse's employer), that health plan must meet the criteria outlined above for a qualified HDHP. If you are enrolled in a health plan that does NOT meet the criteria for a HDHP, you may NOT set up an HSA and you must stop contributing to any HSA you do have.
You may be covered by the following plan types while still being eligible to set up an HSA: dental; vision; short- and long-term disability; life and accidental death; long-term care; and certain health Flexible Spending Accounts (FSAs), including: insurance for specific types of diseases or illnesses, such as cancer plans; hospital indemnity plans; limited-purpose FSA (dental & vision only); and post-deductible Health Reimbursem*nt Arrangements (HRAs).
NOTE: if a spouse's Flexible Spending Account (FSA) can pay for any medical expenses before the HSA-qualified plan deductible is met, you are not eligible to open an HSA. For you to participate in a health FSA and an HSA at the same time, the FSA, whether provided by your or your spouse's employer, must typically be limited to reimbursing dental expenses, vision care expenses and/or medical expenses that exceed your HDHP deductible. Check with your or your spouse's benefits administrator to determine if you can participate in any health FSA offered by your or your spouse's employer.
An HSA is a unique tax-advantaged account that you can use to pay for current or future IRS-qualified medical expenses. With an HSA, you'll have:
A tax-advantaged savings account that you use to pay for IRS-qualified medical expenses as well as deductibles, co-insurance, prescriptions, vision and dental care
Contributions to your HSA can be made with pre-tax dollars, which reduces your taxable income.
Any after-tax contributions that you make to your HSA are tax deductible.
HSA funds earn interest tax free** and when used for IRS-qualified medical expenses are also free from tax. **Interest earned is taxed in NJ.
Unused funds that will roll over year to year. There's no "use or lose it" penalty.
Potential to build more savings through investing. You can choose from a variety of HSA self‐directed investment options with no minimum balance required
Additional retirement savings. After age 65, funds can be withdrawn for any purpose without penalty.
Note: Investment accounts are not FDIC insured, may lose value and are not a deposit or other obligation of, or guarantee by the bank. Investment losses which are replaced are subject to the annual contribution limits of the HSA.
You can pay for a wide range of IRS-qualified medical expenses with your HSA, including many that aren't typically covered by health insurance plans. This includes deductibles, co-insurance, prescriptions, dental and vision care, and more. For a complete list of IRS-qualified medical expenses, visitirs.govorour page listing qualified medical expenses.
You can pay for IRS-qualified medical expenses with funds from your HSA by using your debit card. You can also pay for part of all of your IRS-qualified medical expenses out-of-pocket and reimburse yourself later with HSA funds.
Your HSA Bank Health Benefits Debit Card provides access to your HSA funds at point-of-sale with signature or PIN and at ATMs for withdrawals. The daily debit card limit for the Health Benefits Debit Card is $5,000 at merchants dedicated to healthcare (e.g. a doctor’s office or hospital) and $3,500 at merchants that are not healthcare specific but offer eligible medical products and/or services (e.g. a department or grocery store). The number of debit card transactions allowed per day is limited and varies based on how the card is used or types of transactions processed. These limits exist as a safeguard against fraudulent activity. For more information, please call the number on the back of your Health Benefits Debit Card.
HSA Bank provides you with multiple options to pay for an expense that exceeds the Health Benefit Debit Card daily limit of $5,000.* Your options include:
You can pay for an expense with your external, personal account or with a credit card and then reimburse yourself by scheduling HSA transfers within theMember Websiteor app (Note: there is a daily transfer limit of $2,500 to safeguard against fraudulent activity, so multiple transfers will be required for amounts above $2,500).
You can work with your provider (or hospital) to make debit card payments over multiple days.
You can pay a provider through your online account. Log in to the Member Website or app and click "Make a Payment." (Note: there is no daily limit to pay a provider.)
NOTE:your transactions are limited to your available cash balance.
*Your HSA Bank Health Benefits Debit Card provides access to your HSA funds at point-of-sale with signature or PIN and at ATMs for withdrawals. The daily debit card limit for the Health Benefits Debit Card is $5,000 at merchants dedicated to healthcare (e.g. a doctor’s office or hospital) and $3,500 at merchants that are not healthcare specific but offer eligible medical products and/or services (e.g. a department or grocery store). The number of debit card transactions allowed per day is limited and varies based on how the card is used or types of transactions processed. These limits exist as a safeguard against fraudulent activity. For more information, please call the number on the back of your Health Benefits Debit Card.
If you pay for an ineligible expense, you must report it in your annual income tax filing and pay the related income taxes, plus a tax penalty. (After age 65, the penalty does not apply.)
No. You do not need to submit any receipts to us or file any claims. Just be sure to use the money for IRS-qualified medical expenses and save your receipts for tax purposes. Using our online expense tracker, you can easily enter medical expense information and securely upload receipts and supporting documentation – all in one place for easy access and tracking.
You can pay or reimburse yourself for any eligible medical expenses incurred after your HSA was established.
You can use your HSA card at an ATM to reimburse yourself for eligible expenses paid out-of-pocket. (A transaction fee may apply. See your HSA Bank Fee and Interest Rate Schedule.)
You can use your HSA Bank Health Benefit Debit Card to pay for doctor visits at the time of the appointment or for qualified items at a pharmacy or other retailer as long as it is for aqualified medical expense. You can also use your debit card to withdraw cash from an ATM to reimburse yourself for expenses you paid out-of-pocket (a transaction fee may apply).
You can check your HSA balance by visiting theMember Website, where you will have secure, 24/7 access to your account balances and transaction history.Learn moreabout managing your account.
You can use your HSA to cover qualified medical expenses for you, your spouse, and any dependent children included on your income tax return.
The IRS sets annual contribution limits, visit theIRS Limits and Guidelines pagefor more information.
Any eligible individual may contribute to an HSA. For an HSA established on behalf of an employee both the employee and the employer may make contributions. Family members may also make contributions on behalf of other family members as long as the other family member is an eligible individual (has a qualified high deductible health plan and is not otherwise insured).
Eligible individuals over the age of 55 are allowed to make additional "catch-up" contributions to their HSAs. The catch-up amount is $1,000 and if you turn 55 during the year you can contribute the full $1,000.
You can claim a tax deduction for contributions up to the applicable maximum contribution that you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040. Contributions up to the maximum contribution limit made by your employer may be excluded from your gross income.
Unused HSA funds roll over year to year; there is no "use it or lose it" penalty. Funds that are rolled over continue to grow and earnings are tax free. At age 65, you will have the ability to use your HSA funds for any purpose on a taxable basis. This makes funding your HSA a great way to save for retirement.
Any unused funds in your HSA automatically roll over each year. You will not lose any unspent money in your account.
If you already have a Health Savings Account (HSA) at another institution and would like to transfer the balance to your HSA at HSA Bank, you can find the instructions on ourTransfer and Rollover page.
Yes you can. Choose from a wide range of securities, including mutual funds, stocks, bonds and more. You can transfer funds between your HSA cash and investment accounts in the Member Website OR by contacting our Client Assistance Center.Visit our HSA Investment pageto learn more.
There are many benefits to your HSA that you should consider before closing your account. Consider keeping your HSA to continue to save for your future health expenses, tax free. If you still feel a need to close your account, please call ourClient Assistance Centerat (800) 357-6246
The routing number is 075907947.
Your HSA funds are never lost due to changes in employment or health plan. If at some point you are no longer covered by an HDHP, you still have access to your funds and can use them to pay for IRS-qualified medical expenses; however you are simply no longer eligible to make contributions.
Yes. The HSA Bank app is available onGoogle Playand theApp Store. While it is a free download, you should check with your wireless provider for any associated fees for accessing the Internet from your device.Before you can use the app, you mustcreate a Member Website username and password. Without a registered account, you won't be able to log in to the app.
You must beregistered on the Member Websiteto use the app. Without registering on the Member Website, you won't be able to log in to the app.
Download the app fromGoogle Playor theApp Store.
Log in to the app to manage your account.
You may receive both a1099-SAand5498-SAfrom us. For more information about your HSA tax forms,view Tax Time 101.
