An HSA is a tax-exempt account established primarily for the purpose of paying qualified medical expenses. Most people covered under an
IRS-qualified High-Deductible Health Plan (HDHP) can open and contribute to an HSA.
An HSA is a personal savings account that can be used to pay for medical, dental, vision and other qualified expenses now or
in life. To contribute to an HSA you must be enrolled in a qualified high-deductible health plan. Your contributions are tax
deductible but are limited annually. If your employer offers payroll deduction, you’ll see immediate tax savings on your
You can use the money tax-free to pay for eligible expenses such as:
Contacts & Eyeglasses
Laser Eye Surgery
No more “use it or lose it”
Since it is a savings account, you are encouraged to save more than you spend. Unlike FSA funds which are “use-it-or-lose-it,”
HSA balance rolls over from year-to-year and earns interest along the way. The account is portable, which means that if you
leave your employer, you can take the HSA with you. It’s your money and your account.
How can an HSA help secure my retirement?
Contributing in a health savings account allows you to invest pre-tax
dollars for your biggest retirement expense - HEALTHCARE.
You can continue to contribute year after year
and withdrawals can be made at any point in time. Whether
you withdraw the money tomorrow, five years from now, or in retirement,
funds used for qualified healthcare expenses are always tax free.
*2018 Value. For illustrative purposes only. Savings calculations are based on a
federal tax rate of 15%, state tax rate of 5%, and 7.65% FICA.
Balance calculations assume an average interest rate of 3%. Actual results may vary.
A contribution of $50 a month over 25 years:
A contribution of $200 a month over 25 years:
Max. family contribution of $6,900 a year over 25 years:
REDUCE your taxable Gross Income.
SPEND tax-free dollars for medical care.
INVEST and grow your HSA tax free!
HSAs offer a triple tax advantage
If Your employer offers payroll deduction through a Cafeteria Plan,
you may make contributions to your HSA on a pre-tax basis or you can
contribute to your HSA post-tax and recognize the same tax savings
by claiming the deduction when filing your annual taxes.
Eligible medical purchases can be made tax-free when you use your HSA. Make this easy by using your Benefits Debit Card
or online bill pay. You can also pay out-of-pocket for eligible medical expenses and then reimburse yourself from your HSA.
Unlike most savings accounts, interest earned on an HSA is
not considered taxable income when the funds are used for eligible
medical expenses. You can also invest HSA dollars and interest earned is also tax free.
Spending is easy
Our convenient debit card allows you to avoid out-of-pocket expenses,
cumbersome claim forms and reimbursement delays. You may also
utilize the “pay a provider” option on our web portal.
Account access is easy
Get account information from our easy-to-use online portal
and mobile app. See your account balance, contributions
and account history in real time.
When do you pay taxes on your HSA?
The only time you may pay taxes or penalties on your HSA funds is if you make
a non-eligible purchase, or if you contribute more than the yearly maximum contribution limit.
However, both circumstances can be corrected free of tax penalties by April
15th of the following calendar year.
Advantages of an HSA
No more "use it or lose it"
Triple tax savings
Job to job and through retirement you KEEP your money
An excellent way to save for healthcare expenses
HSA Tools & Calculators
Determine your tax savings with our HSA Tax Savings calculator