Health Savings Accounts (HSAs)

HSA's allow individuals with high-deductible health insurance plans to set aside money for future medical expenses. Contributions are tax deductible and earn interest tax free until withdrawn. Distributions are tax free when used for qualified medical expenses.

  • No monthly service charge
  • No minimum balance
  • Earns dividends
  • Unlimited check-writing privileges
  • Free VISA debit card with a daily ATM cash limit of $400 and no annual fee
  • Unlimited signature-based debit transactions

Commonly Asked Questions

Table data for Health Savings Account Basics
 
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What is a Health Savings Account? Health Savings Accounts allow members to set aside money for future medical expenses. There are certain tax advantages to HSAs, e.g contributions are tax deductible and earn interest tax free until withdrawn. Withdrawn funds used to pay for "qualified medical expenses" remain tax free
What is a High Deductible Health Plan (HDHP)? A health plan that satisfies both an annual deductible and a maximum out-of-pocket medical expense requirement. The annual minimum deductible is $1,300 for 2017 and the out-of-pocket expense cap cannot exceed $6,550 for 2017 for single coverage. The annual deductible must be at least $2,600 for 2017 and the out-of-pocket expense cap cannot exceed $13,100 for 2017 for family coverage. Individuals with single coverage may contribute up to $3,400 in 2017 and individuals with family coverage may contribute up to $6,750 in 2017. Eligible individuals that are age 55 and older may make HSA catch-up contributions up to $1,000.
Who is eligible to open an HSA? Any individual who is covered under a HDHP and generally does not have coverage under another non HDHP is eligible for an HSA. The eligible individual can not be enrolled in Medicare and is not eligible to be claimed as a dependent on another individual's tax return.
Are there income limits? No.
Are there age limits? Contributions must stop once the HSA owner reaches age 65. Contributions cannot be made beginning with the month the eligible individual enrolls in Medicare.
Who can contribute to an HSA? Any individual including an eligible individual's employer may contribute to an HSA.
Are there contribution limits? Individuals with single coverage may contribute up to $3,400 in 2017 and individuals with family coverage may contribute up to $6,750 in 2017. Eligible individuals that are age 55 and older may make HSA catch-up contributions up to $1,000.
When are HSA assets available ? HSA assets are payable on demand. There are no distribution restrictions on when and how often an HSA owner may take distributions from an HSA. Using checks and debit cards are acceptable means of withdrawing HSA assets from the account.
How are distributions from an HSA taxed? Distributions from HSAs may be exempt from federal income tax and penalties, depending on whether the HSA owner has qualified medical expenses.
Are there any "use it or lose it" provisions? No. HSAs roll over from year to year, and are fully portable from one Custodian/Trustee to another.
Are there reporting requirements? Yes, the HSA owner will file form 8889 annually to report the amount of distributions used for qualified medical expenses.

Schedule an Appointment

If you would like more information regarding an HSA you can contact us at 610.821.2403 or schedule an appointment with one of our Financial Center Associates. By scheduling an appointment, you can ensure there will be an associate available to meet with you at your chosen time.