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Health Savings
Accounts

A Health Savings Account (HSA) is like a personal savings account, but it can only be used for qualified healthcare expenses. To be eligible, you must be enrolled in a High-Deductible Health Plan (HDHP). Health Savings Accounts also have some important tax advantages. Eligible expenses include a wide range of medical, dental and mental health services.

Open HSA Account Today

No annual fees - just pay a $20 start-up fee. A free debit card is also available to qualified customers.

Tax-Free Withdrawls

Withdrawals from your HSA are not subject to federal (or in most cases, state) taxes if you use them for qualified medical expenses.

Tax-Free Earnings

Any interest or other earnings on the money in the account is tax free.

Annual Rollover

If you have money left in your HSA at the end of the year, it rolls over to the next year.

A Health Savings Accounts (HSA) provides a tax advantage to offset health care expenses. This tax-exempt custodial account is established exclusively for the purpose of paying or reimbursing qualified medical expenses. It is available to taxpayers in the United States who are enrolled in a high deductible health plan (HDHP).

The money in your HSA remains available for future qualified medical expenses even if you change health insurance plans, go to work for a different employer, or retire.

Others Can Contribute

Contributions can come from you, your employer, a relative or anyone else who wants to add to your HSA. The Internal Revenue Service does, however, set limits. For 2019, for example, the limit is $3,500 for individuals and $7,000 for families, plus an additional $1,000 “catch-up” contribution for anyone age 55 or older by the end of the tax year.

Pre-Tax Contributions

Contributions are typically made with pre-tax dollars, through payroll deductions at your employer. As a result, they are not included in your gross income and are not subject to federal income taxes. In most states, contributions are not subject to state income taxes.

Maximum Contribution Limit

The maximum HSA contribution limit is $3,500 per year for an individual, while families can contribute $7,000. There is also a catch-up contribution limit of $1,000 for those who are age 55 or older (note: catchup contributions for retirement accounts start at age 50).

Tax-Deductible After-Tax Contributions

If you make contributions with after-tax dollars, you can deduct them from your gross income on your tax return, reducing your tax bill for the year.