Health Savings Accounts
Get valuable tax benefits while saving and paying for your medical expenses.
Our Health Savings Accounts have no service fees, no minimum balance fees. Our HSA Checking earns interest and also comes with a free Debit Card. Click here to see our tiered HSA Checking interest rates.
About Health Savings Accounts:
Health Savings accounts were established under a Medicare reform measure. The law allows anyone younger than 55 to make annual tax-deductible contributions of up to $3,400 per person or $6,750 per family for medical expenses not covered by health insurance, including insurance deductibles, co-pays, and prescriptions (for tax year 2017). Funds in the accounts can also be used to pay health premiums during a period of unemployment or for health expenses after retirement. Accountholders from 55 to 64 can make higher contributions to the accounts.
Annual Contribution Levels for HSAs
- For the 2016 tax year, the maximum annual HSA contribution for an eligible individual with self-only coverage is $3,350. For family coverage, the maximum annual HSA contribution is $6,650.
- Catch up contribution for individuals who are 55 or older is increased by statute to $1,000.
- Individuals who are eligible individuals on the first day of the last month of the taxable year (December for most taxpayers) are allowed the full annual contribution (plus catch up contribution, if 55 or older by year end), regardless of the number of months the individual was an eligible individual in the year. For individuals who are no longer eligible individuals on that date, both the HSA contribution and catch up contribution apply pro rata based on the number of months of the year a taxpayer is an eligible individual.