What Is An HSA?

A Health Savings Account (HSA) is a tax-favored account used in conjunction with an HSA-compatible health plan. You save money tax-free to cover current or future eligible medical expenses that are not paid for by your health plan.

Why Open an HSA?

It's important to open an HSA so you can save money on healthcare by using tax free funds to pay for eligible medical expenses. You can use your HSA funds whenever you need them, now or in the future. Plus, the account is yours to keep. Even if you change jobs, retire or change health insurance plan.

Tax Advantages

An HSA provides triple tax savings by reducing your Federal, State* and FICA taxes. Here's how:

  • Contributions to your HSA can be made with pre-tax dollars, which reduces your taxable income
  • Any after-tax contributions that you make to your HSA are tax deductible
  • HSA funds earn interest tax free and when used for eligible healthcare expenses are also free from tax

Investment Opportunities

  • HSA funds can be invested for the possibility of greater earning potential. (HSA Bank does not provide brokerage services; brokerage services are provided by TD Ameritrade and DEVENIR.)
  • Choose from a wide variety of stocks, bonds and mutual funds.

Start Saving Today-3 Easy Steps

  1. Verify you are eligible.
    You must be covered under an HSA-compatible health plan, not be enrolled in Medicare or other non-compatible plans, and not be claimed as a dependent on another person's tax return.
  2. Complete the HSA application.
    Simply enroll online, or download an application.
  3. Start Saving
    Your account is typically opened within 1-2 business days and you can expect your Welcome Kit and debit cards to arrive 7-10 business days later. Start using the Member Website.

* HSA contributions are taxed in AL, CA, NJ. HSA Bank does not provide tax advice. Consult your tax professional for tax-related questions.

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