Health Savings Account (HSA)

Flexible and easy to use, a Health Savings Account is a tax-advantaged personal savings account that works with a qualified health plan. Individuals 18 years or older and who participate in a High Deductible Health Plan can make contributions to a HSA and use those funds to pay for medical expenses, or to save for future and retiree health expenses tax-free.

Summary

• No setup or annual fees
• No minimum balance to open
• Earn competitive interest on entire balance
• Can have tax-free contributions deposited directly from paycheck
• If contributions are made after tax, the amount deposited is tax deductible

• Withdrawals are tax free when used for qualified medical expenses*
• Money rolls over year to year; no "use it or lose it" policy
• HSA is not tied to any employer
• Easy withdrawal access by check, debit, online, or teller

View our current rates.

*Withdrawals for non-qualified medical expenses are subject to income tax and a 10% penalty. The 10% penalty is waived for persons 65 and over or who have become disabled.

Eligibility

• Must be covered under a qualified, high deductible health plan
• Cannot be claimed as a dependent on another person's tax return
• Cannot be enrolled in Medicare

Contribution Limits

Contribution limits are set by the IRS. Current 2012 contribution limits are:

• $3,100 for a single person
• $6,250 for a family
• A person age 55 or older may make an additional $1,000 "catch-up" contribution