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DEPOSIT SERVICES

Health Savings Account (HSA)

  • No minimum deposit to open
  • Unlimited check writing or debit transactions
  • Balance earns interest
  • Free debit card, internet banking, bill pay, mobile banking and mobile deposit
  • eStatements (fee applicable if paper statement is requested)

A Health Savings Account (HSA) is like a bank account that is funded with tax-deductible dollars and can be used to pay for qualified medical expenses. Remaining balances roll over from year to year and earn interest tax-free. For additional information on HSA accounts please see the freqently asked questions below and then contact us for additional information.

AM I ELIGIBLE FOR HSA?

Most individuals enrolled in a qualified High-Deductible Health Plan (HDHP) may establish a Health Savings Account (HSA). It is a person’s responsibility to check with his or her insurer or health plan administrator to make sure their HDHP is HSA-eligible.
In addition, a person:
  • Cannot be enrolled in Medicare
  • Cannot be claimed as a dependent on another person’s tax return
  • Cannot have any non-permitted coverage

CAN MY MONEY BE USED FOR NON-MEDICAL EXPENSES?

If HSA funds are used to pay for a non-eligible expense, the funds will become taxable income and may also have a 20% tax penalty. This penalty does not apply however if age 65 or older or disabled at the time of the withdrawal for a non-eligible expense. However, this withdrawal will be subject to income taxes.

What is a qualified expense?

Qualified medical expenses include the portion of costs associated with services typically covered by a health care plan, such as office visits, emergency room services, and hospitalization that are not reimbursed by insurance. These include medical plan deductibles and coinsurance. Qualified medical expenses also include costs for prescription drugs, vision expenses, including eyeglasses and contact lenses, as well as non-cosmetic dental expenses.

What are some non-qualified expenses?

  • Health Insurance Premiums
  • Over-the-counter medicines


HSA Owner Responsibility

  • Make sure your insurance plan qualifies as HSA eligible
  • Make sure contributions do not exceed the annual limit
  • Make sure distributions are used for qualified medical expenses
  • Do not overdraw the HSA account
  • Tell the bank if any contributions are not "regular" or if any distributions are not "normal"
  • Show the HSA contributions and distributions on IRS form 8889 when filing tax returns