Health Savings Account (HSA)

Whether it's a medical emergency or a routine check-up, have the funds you need to pay for qualified medical expenses with a health savings account (HSA). While you make tax-deductible* contributions, your HSA balance grows at a competitive rate — and there are no setup fees or annual fees to worry about. Make sure your health needs are covered and open your HSA today.

  • Have the funds you need for qualified medical expenses*
  • Enjoy tax advantages*:
    • Contributions are tax-deductible
    • Earnings are tax-deferred
  • Works alongside an HDHP (high deductible health plan)
  • Savings balance rolls over from year to year
  • No setup or annual fees
  • Earn competitive interest
  • Free online banking
  • Free e-Statements
  • Funds may be used as taxable retirement income*
  • Make automatic contributions via savings, checking, or payroll
  • FDIC Insured
  • $25 minimum deposit to open

Please note that you must be covered under an HDHP (high deductible health plan) in order to be eligible for an HSA account.

View our brochure to learn more.


Are there other requirements for the HDHP?

Yes. For HSA purposes, the HDHP must limit out-of-pocket expenses, based on the type of insurance coverage, to no more than the amounts shown in the chart that follows.

*Subject to annual cost-of-living adjustments.

Can I have an HSA and participate in a health flexible spending account (FSA)?

One of the general rules for HSA eligibility is that if you are covered under another health plan that is not an HDHP, you are not an eligible individual, and you cannot make regular contributions to an HSA.

Who can contribute to my HSA?

If you meet the eligibility requirements for an HSA you, your employer, your family members, and any other person (including nonindividuals) may contribute to your HSA. This is true whether you are employed, self-employed or unemployed.

What is a health savings account?

A Health Savings Account (HSA) is a tax-exempt trust or custodial account established for the purpose of paying or reimbursing qualified medical expenses of you, your spouse, and your dependents. Contributions to an HSA are tax deductible, the earnings grow tax deferred, and distributions to pay or reimburse qualified medical expenses are tax free. (Consult a tax advisor.)

Am I eligible for an HSA?

You are an eligible individual and may make regular HSA contributions if you are covered under a qualifying high deductible health plan (HDHP) and answer "No" to each of the following questions:

  • Do you have other health coverage (except permitted coverage)?
  • Are you enrolled in Medicare?
  • Are you claimed as a dependent on another person's tax return?

What is an HDHP?

An HDHP is a health plan with an annual deductible, based on the type of insurance coverage, that is no less than the amounts shown in the chart that follows.

*Subject to annual cost-of-living adjustments.

How much can be contributed to my HSA?

The maximum annual contribution amount is the standard limit as shown in the chart that follows. It is reduced by any employer contributions to your HSA, any contributions made to your Archer MSA, and any qualified HSA funding distributions from your IRA to your HSA. Additionally, "catch-up" contributions are available for eligible individuals who are age 55 or older by the end of their taxable year and for any months individuals are not enrolled in Medicare.

Note: Any transfer from a checking, savings, or other type of deposit account is considered a regular contribution into your HSA and is applied to your maximum annual contribution limit.

*Subject to annual cost-of-living adjustments.

How do I factor in contributions made by my employer?

Aggregate employer contributions to an HSA reduce the amount you may contribute to your HSA. You are fully responsible for tracking the amount of your annual contributions including those made by your employer or any other third party.

When is the contribution deadline for funding an HSA?

The deadline for regular (including catch-up) HSA contributions is your federal income tax return due date, excluding extensions, for that taxable year. The due date for most taxpayers is April 15.

May I claim a federal tax deduction for my HSA contribution?

You may deduct contributions made by anyone other than your employer as long as they do not exceed the maximum annual contribution limit. Employer contributions are not wages for federal income tax purposes. Rollover and transfer contributions from HSAs and Archer medical savings accounts, and qualified HSA funding distributions from IRAs, are not tax deductible. IRS Form 8889, Health Savings Accounts (HSAs), is used to figure your HSA deduction and is filed with your tax return.

When can I take distributions from my HSA?

You may take a distribution from your HSA at any time — even if you are not currently eligible to make contributions to your HSA. HSA distributions used exclusively to pay for or reimburse qualified medical expenses incurred by you, your spouse, or your dependents are not included in your gross income for the year of the distribution.

What is a qualified medical expense?

Qualified medical expenses include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease that affects any structure or function of the body, and amounts paid for prescription drugs and insulin. This includes items that are not medicines or drugs including equipment such as crutches, supplies such as bandages, and diagnostic devices such as blood sugar test kits. This also includes transportation costs associated with this medical care and certain qualified long-term care services. Qualified medical expenses also include otherwise eligible amounts paid for your child who is claimed as a dependent by your former spouse. To be paid or reimbursed tax free a qualified medical expense must be incurred after your HSA is established.

Note: You are solely responsible for determining if you have a qualified medical expense. Consult your tax or legal professional and review IRS Publication 502, Medical and Dental Expenses, or Schedule A (Form 1040), Itemized Deductions, for a list of qualified medical expenses.

Is a distribution for non-prescription drugs a qualified medical expense?

A drug or medicine (other than insulin) must be prescribed to be considered a qualified

medical expense for HSA purposes. The prescription requirement does not apply to the reimbursement of drug or medicine expenses incurred before January 1, 2011.

What if I take a distribution and it is not used to pay for or reimburse a qualified medical expense?

Any HSA distribution you do not use for qualified medical expenses is subject to federal income tax and a 20 percent penalty. A distribution not used for qualified medical expenses is subject to income tax only and not the 20 percent penalty tax if:

  • You are disabled as defined in IRC Section 72(m)(7)
  • You have reached age 65, or
  • Distribution is made due to your death.

With an HSA, you can earn the following interest:

Individuals & Families

  • Balances 0 to $2,499 – 0.15% APY
  • Balances $2,500-$4,999 – 0.25% APY
  • Balances above $5,000 – 0.40% APY

APY=Annual Percentage Yield

*Consult a tax advisor.