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

Health Savings Accounts (HSA)

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 a 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.