Health Savings Account - HSA

How It Works

• You must have coverage under a High Deductible Health Plan
• You may not be covered by any health plan that is not an HDHP (exceptions exist for insurance that covers accidents, disability, dental care, vision care, long-term care and other "permitted insurance.")
• You must not be enrolled in Medicare
• You may not be claimed as a dependent on someone else's tax return.
• You must comply with the guidelines for annual contribution limits.
• You must understand and manage your contributions and distributions. The financial institution holding your account is not responsible for advising you regarding compliance with these requirements.
• You should keep all receipts for expenses made from the Health Savings Checking account in case they are needed during an audit.
• You do not lose the funds in your Health Savings Checking account if they are not used within the year.
• You may make contributions to your HSA account for the previous tax year until April 15th or the tax deadline.
• HSA funds can pay for any qualified medical expense. This includes most medical care and services, and dental and vision care. Refer to IRS Pub 502 (available at www.irs.gov) for a partial list. To be an expense for medical care, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.
• Your employer or a tax adviser can help you determine if you are eligible to open an HSA and provide you with the contribution limits that apply to your situation.
• Your HSA funds may not be used to make loan payments or as collateral for a loan
• Overdraft protection - not offered with this account. Non-sufficient funds fees will be assessed if the account is overdrawn.
• No minimum opening deposit required.