Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-exempt trust or custodial account established exclusively for the purpose of paying or reimbursing qualified medical expenses of you, your spouse, and your dependents. A HSA is established by you in much the same way that you establish an IRA.


You are eligible to make an HSA contribution if you:

  • Are covered under a high-deductible health plan
  • Are not also covered by any other health plan
  • Are not enrolled in Medicare
  • Cannot be claimed as a dependent on another person's tax return.


If you qualify for a HSA, you, your employer, your family members, and any other person (including non-individuals) may contribute to your HSA. This is true whether you are self-employed or unemployed. The maximum annual contribution amount is generally 100% of the annual medical insurance deductible.*

Other benefits:

  • Contributions are deductible*
  • Contributions made by an employer may be excluded from employee's gross income.
  • Earnings grow tax deferred
  • Distributions for qualified medical expenses are tax free
  • "Portable" account stays with you if you change employer or leave the work force.
  • A "catch-up" contribution is available for individuals who are age 55+

Please contact a Personal Banker for assistance with any Health Savings Account related questions.

*Consult with your tax or legal professional for guidance.