Take care of healthcare costs — without suffering financial stress. Our HSA helps you set money aside for when you need it most and makes those medical bills more affordable.
Interest above standard savings builds your balance, while tax advantages let your dollar stretch even farther. You, your employer, or a kind friend can contribute to your HSA — tax-free. And you don’t have to feel bad for enjoying good health. Unused funds remain in your account year after year.
An eligible individual who is age 55 or older may make additional HSA contributions (called catch-up contributions) up to $1,000 annually and may continue to make catch-up contributions until enrolled in Medicare. You may contribute to your HSA until the tax return due date which is typically April 15th.
HSA distributions not used for qualified medical expenses are subject to ordinary income tax and if taken before age 65, a 20% IRS penalty tax could result if not used for qualified expenses.
Funds held in an HSA account may be used for qualified medical expenses as defined in United States tax law. These expenses include the majority of medical, vision, or dental expenses. Additionally, although HSA account balances cannot be used to pay health insurance premiums, they may be available to be used to pay qualified long-term care premiums after age 65.
Please be aware that any funds withdrawn from an HSA account that are not used for qualified medical, vision, or dental purposes are typically subject to ordinary income tax. If taken before age 65 they are also subject to a 20% IRS penalty unless due to a disability or death.
1BALANCE COMPUTATION METHOD: APY=Annual Percentage Yield. We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day. The daily balance that we use when calculating interest is the collected balance. That means we only include those funds for which we have actually received payment when we determine the balance on which interest is paid. Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks).
2Consult a tax advisor.
3You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 10% penalty.