You can use your Health Savings Account for non-medical expenses after age 65 without penalty.
Our HSA is compatible with many health insurance plans (typically bronze or silver) offered on public and private exchanges or online marketplaces.
Health Savings Accounts (HSAs) are tax-advantaged medical savings accounts available to United States taxpayers who are enrolled in a High Deductible Health Plan (HDHP). HSAs are owned by the individual, differentiating them from company-owned Health Reimbursement Arrangements (HRAs) that are an alternate tax-deductible source of funds paired with HDHPs. And, unlike a Flexible Spending Account (FSA), HSA funds roll over and accumulate year over year if not spent, with the ability to earn tax-free interest on the account. HSA funds may be used to pay for qualified medical expenses at any time without federal tax liability.
For eligible individuals covered by a qualified high deductible healthcare plan (HDHP), an HSA offers a number of benefits. Money that would otherwise be lost to high premiums could be invested in a tax-free, interest-bearing HSA. For those with higher medical expenses, an HDHP combined with an HSA still may provide overall cost savings as compared to a traditional plan with higher premiums and out of pocket maximums. Learn more about the benefits of having an HSA or use our decision tool to determine if an HSA is right for you.
If you have a qualified High Deductible Health Plan (HDHP) - either through your employer or one you've purchased on your own - chances are you can open an HSA. Additionally:
A high deductible health plan (HDHP) is a health insurance policy that features higher deductibles and lower premiums than traditional insurance plans. HDHPs can be combined with a health savings account or a health reimbursement arrangement that allows for payment of qualified out-of-pocket medical expenses on a pre-tax basis.
An HSA is a unique tax-advantaged account that you can use to pay for current or future IRS-qualified medical expenses. With an HSA, you'll have:
You can pay for a wide range of IRS-qualified medical expenses with your HSA, including many that aren't typically covered by health insurance plans. This includes deductibles, co-insurance, prescriptions, dental and vision care, and more. For a complete list of IRS-qualified medical expenses, visit irs.gov or hsabank.com/IRSQualifiedExpenses.
You can pay for IRS-qualified medical expenses with funds from your HSA by using your debit card. You can also pay for part of all of your IRS-qualified medical expenses out-of-pocket and reimburse yourself later with HSA funds.
If you pay for an ineligible expense, you must report it in your annual income tax filing and pay the related income taxes, plus a tax penalty. (After age 65, the penalty does not apply.)
No. You do not need to submit any receipts to us or file any claims. Just be sure to use the money for IRS-qualified medical expenses and save your receipts for tax purposes. Using our online expense tracker, you can easily enter medical expense information and securely upload receipts and supporting documentation – all in one place for easy access and tracking.
You can pay or reimburse yourself for any eligible medical expenses incurred after your HSA was established.
You can use your HSA Card at an ATM to reimburse yourself for eligible expenses paid out-of-pocket. (A transaction fee may apply.)
You can use your HSA debit card to pay for doctor visits at the time of the appointment or for qualified items at a pharmacy or other retailer as long as it is for a qualified medical expense. You can also use your debit card to withdraw cash from an ATM to reimburse yourself for expenses you paid out-of-pocket (a transaction fee may apply).
You can check your HSA balance by visiting the Member Website, where you will have secure, 24/7 access to your real-time account balances and transaction history. Visit our Member Features page to view other features to help simplify healthcare management.
You can use your HSA to cover qualified medical expenses for you, your spouse, and any dependent children included on your income tax return.
The 2016 maximum contribution limit for employees with a single plan is $3,350 and for those with a family plan is $6,750. Individuals age 55 and older can make an additional $1,000 catch-up contribution. Learn more by visiting the IRS Guidelines & Eligible Expenses page.
Any eligible individual may contribute to an HSA. For an HSA established on behalf of an employee both the employee and the employer may make contributions. Family members may also make contributions on behalf of other family members as long as the other family member is an eligible individual (has a qualified high deductible health plan and is not otherwise insured).
Eligible individuals over the age of 55 are allowed to make additional "catch-up" contributions to their HSAs. The catch-up amount is $1,000 and if you turn 55 during the year you can contribute the full $1,000.
You can claim a tax deduction for contributions up to the applicable maximum contribution that you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040. Contributions up to the maximum contribution limit made by your employer may be excluded from your gross income.
Unused HSA funds roll over year to year; there is no "use it or lose it" penalty. Funds that are rolled over continue to grow and earnings are tax free. At age 65, you will have the ability to use your HSA funds for any purpose on a taxable basis. This makes funding your HSA a great way to save for retirement.
Any unused funds in your HSA automatically roll over each year. You will not lose any unspent money in your account.
If you already have a Health Savings Account (HSA) at another institution and would like to transfer the balance to your HSA at HSA Bank, you can find the instructions on our Transfer and Rollover page.
Yes you can. Choose from a wide range of securities, including mutual funds, stocks, bonds and more. You can transfer funds between your HSA cash and investment accounts in the Member Website OR by contacting our Client Assistance Center. Visit our HSA Investment page to learn more.
There are many benefits to your HSA that you should consider before closing your account. Consider keeping your HSA to continue to save for your future health expenses, tax free. If you still feel a need to close your account, please call our Client Assistance Center at (800) 357-6246.
The routing number is 075907947.
Your HSA funds are never lost due to changes in employment or health plan. If at some point you are no longer covered by an HDHP, you still have access to your funds and can use them to pay for IRS-qualified medical expenses; however you are simply no longer eligible to make contributions.
Yes. HSA Bank Mobile is available on both Google Play (Android-powered devices) and the App Store (iPhone, iPod Touch, iPad). While it is a free download, you should check with your wireless provider for any associated fees for accessing the Internet from your device. IMPORTANT NOTE: Before you can use the app, you must be registered on the Member Website. To obtain a username and password, simply call the Client Assistance Center at 800-357-6246. Without a registered account, you will not be able to access any of the app’s functionality.
Flexible Spending Accounts (FSAs) are tax-advantaged financial accounts that can be set-up through employers' cafeteria plans in the United States. An FSA allows an employee to designate a portion of his or her pre-tax earnings to pay for qualified expenses as established in the cafeteria plan, most commonly for medical expenses, but often for dependent care or other expenditures. The employer is also allowed to make contributions to employee FSAs, if desired, in order to offer a greater benefit to the staff. Since the money deducted from an employee's pay for transfer to an FSA is not subject to federal, state, or payroll taxes, employees can save upwards of 40% on eligible expenses, and sometimes more, depending on their tax bracket.
Enrolling in an FSA allows you to set aside pretax money from your paycheck. You will enjoy a tax savings on the money you can use for eligible health care expenses.
With an FSA, you elect to have your annual contribution (up to the limit set by the IRS, which for 2016 is $2,550) deducted from your paycheck each pay period, in equal installments throughout the year, until you reach the yearly maximum you have specified. The amount of your pay that goes into an FSA will not count as taxable income, so you will have immediate tax savings. FSA dollars can be used during the plan year to pay for qualified expenses and services. And at the end of the year, you can roll over up to $500 of your contribution to the next plan year, provided your employer's plan allows this.
Yes. All eligible out-of-pocket expenses incurred by you, your spouse and your qualified dependents can be reimbursed from your Healthcare FSA, even if your spouse and qualified dependents are not enrolled in your employer's health plan.
For 2016, Healthcare FSA contributions are limited by the IRS to $2,550. If filing taxes jointly, the maximum contribution is $5,100 (2,550 per person). Employers may elect a lower limit as part of their Healthcare FSA plan design. You should check with your Human Resources department for the specifics of your plan. The IRS contribution limit with be adjusted annually to account for inflation increases.
Your plan document may provide for a grace period that allows you to use your remaining funds for IRS-qualified expenses incurred for up to 2 ½ months into the next year.
Alternatively, if you have an FSA or Limited Purpose FSA, you may be eligible to roll over up to $500 of your contribution to the next plan year, provided your employer has changed the plan documents to allow this. This rollover option does not apply to Dependent Care FSAs.
Deductions for your Healthcare FSA will also end when your employment ends unless your employer is obligated to offer you COBRA continuation and you elect this option. If your employer is not obligated to offer you COBRA and/or you choose not to elect COBRA, you are eligible to be reimbursed for qualified expenses incurred while you were employed and the account was active. Requests for reimbursements should be submitted prior to the end of your employer's run-out period or period of time for which a claim for an expense can be submitted for a plan year that has ended or after an employee has terminated.
Health Reimbursement Arrangements (HRAs) are employer-funded plans that reimburse employees for incurred medical expenses that are not covered by the company's standard insurance plan. Because the employer funds the plan, any distributions are considered tax deductible (to the employer). Reimbursement dollars received by the employee are generally tax-free. Unused HRA dollars may roll over from year to year, if allowed per plan rules, providing a potential incentive for employees to be better stewards of healthcare spending. If employment is terminated, the employer can choose to keep unused funds.
HRAs are only funded by your employer. Your employer contributes a determined amount to your HRA. Contact your HR department for specifics on your plan setup.
Yes. An HRA is designed to cover expenses not paid by your health plan including deductibles, coinsurance and copayments as well as many expenses your health plan may not cover.
HRA funds can be used on eligible expenses determined by your employer. These typically include co-pays, health insurance deductibles and other IRS approved healthcare expenses. For more information on your plan, contact your HR department.
You can access forms by logging into the Member Website.