HSA (Health Savings Account)

An account to save for medical expenses when paired with a high deductible health plan.

  • No minimum deposit required to open
  • No minimum balance required
  • $20 annual fee
  • Free Paper Statement + Images
  • Free Online Bank Statement + Images
  • Tiered interest rates
  • Debit Card available
  • Online Banking & Bill Pay available
  • Info24 - 1-800-808-9852 (automated telephone banking) available

Any adult can contribute to an HSA if they:

  • Have coverage under an HSA-qualified “high deductible health plan" (HDHP)
  • Check with your insurance provider to verify that the high deductible health plan you are considering is HSA qualified
  • Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted)
  • Are not enrolled in Medicare
  • Cannot be claimed as a dependent on someone else's tax return
  • No income limits apply
  • Individuals do not have to have earned income from employment to have an HSA

HSA Contributions

  • Contributions can be made by you, your employer, family members, friends, church, etc. The total contributions are limited annually. If you make a contribution, you can deduct the contributions (even if you do not itemize deductions) when completing your federal income tax return.
  • Contribution to your HSA can be made each year that you are eligible.
  • Total annual contribution may not exceed the following amounts as specified in the IRS Code Section 223:
    • 2010 - $3050 for Self-only coverage and $6150 for Family coverage
    • 2011 - $3050 for Self-only coverage and $6150 for Family coverage
    • 2012 - $3100 for Self-only coverage and $6250 for Family coverage
  • Individuals age 55 and older can also make additional "catch-up" contributions. The maximum annual catch-up contribution is as follows:

    2010 and after - $1,000
  • Contributions can be made as late as April 15 of the following year.
  • Contributions to the account must stop once you are enrolled in Medicare. However, you can keep the money in your account and use it to pay medical expenses.

HSA Distribution of Funds

  • You can use the money in the account to pay for any "qualified medical expense" permitted under federal tax law. This includes most medical care and services, and dental and vision care, and also includes over-the-counter drugs such as aspirin.
  • You can use the money in the account to pay for medical expenses of your spouse and dependent children even if they are not covered by your HDHP.
  • Any amounts used for purposes other than to pay for "qualified medical expenses" are taxable as income and subject to an additional 10% tax penalty.
  • After you turn 65, the 10% additional tax penalty no longer applies.
  • More Information about HSAs

    Additional information may be found at the Treasury's web site at www.treas.gov/offices/public-affairs/hsa.

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