3 people hiking and text saying, "Savings for your health"

Health Savings Account

A Health Savings Account is like a personal savings account but the money in it is used to pay for your health care expenses. As a benefit, the money you deposit into your account isn't taxed.
Who can set up a health savings account?
To qualify to open a health savings account (HSA) you must be under the age of 65, carry a high deductible insurance plan and answer 'no' to the following questions:
  1. Do you have other health coverage (except permitted coverage)?
  2. Are you enrolled in Medicare?
  3. Are you claimed as an dependent on another person's tax forms?
What are some basic facts about contributing to an HSA?
  • HSA contributions can be made with pre-tax money or after-tax money, which means that contributions are tax deductible.
  • Any interest earned on your account is tax free.
  • Contributions may be made by you, your employer or members of your family.
  • Contributions to an HSA can be lump sum or periodic.
  • HSA funds may be rolled over year to year.
How do HSA distributions work?
  • Withdrawals to cover you, your spouse or your dependents for any qualified medical expense are tax free.
  • Leftover funds that are not used for medical purposes may be used to supplement your retirement savings.
  • Non-medical related withdrawals made before the age of 65 are subject to a 10% penalty. After age 65, any non-medical withdrawals will be penalty-free but no longer tax free.
See your Personal Banker for full product disclosure.