You get more out of your HSA dollars when you use them to pay for IRS-qualified medical expenses.
The dollars you contribute to employee HSAs reduce your payroll taxes.
We help your customers get the most tax savings from their HSAs.
Pre-tax payroll deductions
If your employer lets you contribute to your HSA by pre-tax payroll deduction, your contributions will not be taxed prior to being deposited into your HSA.
You can reduce your taxable income by contributing post-tax dollars to your HSA and claiming a deduction when you file your taxes. (Consult an accountant or the IRS to verify eligibility.)
You’re saving money every time you pay for IRS-qualified medical expenses with tax-free dollars from your HSA.
The interest on your HSA funds grows on a tax-deferred basis. Plus, any interest earned is not considered taxable income when it’s used to pay for IRS-qualified medical expenses
After you retire, you can continue to use tax-free HSA funds to pay for IRS-qualified medical expenses. Funds can also be withdrawn for other reasons at retirement age without penalty, but withdrawals will be taxed.
The only time you may pay taxes or penalties on your HSA is if you use funds to pay for non-IRS-qualified medical expenses, OR if you contribute more than the yearly maximum contribution limit. However, you have until your tax-filing deadline to correct these situations without tax penalty. HSA Bank will send you all the documents you need to complete your HSA-related tax filing.
Each state has its own tax guidelines for HSAs. To see if your HSA is eligible for state tax savings, select your state from the list below.
The following states are not subject to state income tax:
The following states do not provide tax benefits for HSAs at the state level:
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