A Health Savings Account (HSA) offers members a way to save for medical expenses on a tax-free basis. To be eligible to open an HSA, a member must have a high deductible health plan.
An HSA gives you more flexibility and control over your health care costs. That’s because it empowers you to make your own health care decisions.
The balance in your HSA at the end of the year is carried over to the next year. That is one benefit of the Health Savings Account compared to a Flexible Spending Account (FSA). The contributions to an FSA must be used by the end of the year.
HSA Checking Accounts – We also offer Health Savings Accounts as a checking account. The HSA Checking account also earns dividends and offers you the convenience of having a debit card to use for medical expenses.
Benefits of an HSA
Protection – You will have an opportunity to save money to pay high or unexpected medical bills.
Affordability – High health insurance policy deductibles mean lower premiums.
Savings – Your ability to deduct your contributions and the tax deferral of account earnings enable you to build your account.
Flexibility – You can contribute at any time during the year, and your HSA balance rolls over from year to year.
Portability – You own the account, so it goes where you go, regardless of any job changes.
HSA Tax Forms
Form 1099-SA – This form will be sent to you in January
Shows the distributions (money spent) from the HSA account for the previous tax season.
This form is used to report distributions made when you file your taxes.
Form 5498-SA – This form will be sent to you in May
Shows the contributions (deposits made) to the HSA account for the previous tax season.
This form is for informational purposes only. The financial institution is required to file this information with the IRS and the form is for your records only.