Health Savings Accounts
With no service fees and no minimum balance fees, our Health Savings Accounts are great for saving and paying for your medical expenses. Get valuable tax benefits and earn interest with our HSA Checking. It even comes with a free debit card! See our tiered HSA Checking interest rates.
About Health Savings Accounts
Health Savings accounts were originally established in 2003 with the Medicare Modernization Act. Since then, anyone younger than the age of 55 may make annual tax-deductible contributions (up to $3,400 per person or $6,750 per family) for medical expenses not covered by health insurance. Funds in HSA accounts can also be used to pay for health premiums during unemployment or for health-related expenses after retirement. Accountholders between the ages of 55 and 64 can make higher contributions to their HSA accounts.
Annual Contribution Levels for HSAs
- In 2016, the maximum annual HSA contribution for eligible individuals with self-only coverage was $3,350 (was $6,650 for family coverage).
- Catch-up contributions for individuals above the age of 55 is increased by statute to $1,000.
- Individuals who are eligible on the first day of the last month of the taxable year (typically December) are allowed the full annual contribution regardless of their previous months of eligibility. If an individual is no longer eligible on that date, both the HSA contribution and catch-up contribution apply based on the taxpayer’s number of eligible months that year.
For more information about Health Savings Accounts, please contact us.