A Health Savings Account (HSA) is a tax-favored savings account available to taxpayers who are enrolled in a High Deductible Health Plan (HDHP) and it is used to pay for qualified medical expenses. Unlike a flexible spending account (also known as FSA), HSA funds roll over and accumulate year to year if they are not spent.
Although Health "Savings" Account is the general title used to refer to this type of account, we offer two options of an interest bearing checking accounts:
- Health Savings Account - Individual
- Health Savings Account - Family
We don't authorize transactions against unavailable funds that would overdraw the account. However, if we have to honor a previously authorized card transaction that settles and completes at a later date when there are not sufficient funds to pay for the transaction, such a transaction may be paid into overdraft. This will not result in an overdraft fee.
Health Savings Accounts have:
- Tax-Deductible Contributions - An HSA owner can deduct all regular HSA contributions except employer contributions and qualified contributions from his/her IRA
- Tax-Free Withdrawals - may be made to pay for qualified medical expenses, including vision and dental
- Tax-Deferred Growth - interest earnings accumulate tax-deferred and unused HSA funds also continue to grow tax-deferred year after year
Consult IRS Publication 969, IRS Form 8889, or your tax advisor for more information on Health Savings Accounts.
You can download information about our HSAs to learn more.