Health Savings Account (HSA)
A Health Savings Account (HSA) is a tax-deductible transaction account that allows you to pay for qualified medical expenses, including those not covered by your insurance, and to save money for future health care costs. The account is the simple and smart accompaniment to a high-deductible insurance health plan (HDHP).
An HSA puts you in control of where and how your health care dollars are spent. Any unused funds rollover from year to year.
HSA Checking features and benefits include:
- Funds in the account can be spent on qualified medical expenses*
- Earn interest on your balances
- Free online banking and e-statements - go paperless!
- HSA Resource® Plus MasterCard® debit card
- Plus, a second free HSA debit card is available upon request for an authorized signer
- The monthly fee of $2.95 is waived with a direct deposit into a 1st Source checking account, or if you work for a HSA partner business
- The initial $25.00 set-up fee can be waived for groups or an HSA partner business
- Checks are available to order
- Deposits, up to the maximum annual contribution, made for qualified medical expenses are tax-deductible.
- Withdrawals used for qualified medical expenses are tax-free
- The interest earned is tax-deferred
- Your unspent funds carry over from year-to-year
- Your employer or insurance carrier may change, but you may always keep your funds at 1st Source.
*Qualified Medical Expenses are defined by Federal Employees Health Benefits law and Section 213 of the IRS Code. Information can be found here.
For additional details and guidance regarding HSAs please refer to IRS.gov and be sure to consult your tax advisor.
For additional tips and reminders regarding an HSA refer to this page.
- Covered under a high deductible health plan (HDHP) on the first day of the month
- Generally not covered by any health plan that is not an HDHP (exceptions exist for coverage that is not part of an HDHP for accidents, disability, dental care, vision care, long-term care, or permitted insurance)
- Not enrolled in Medicare
- Not able to be claimed as a dependent on another person’s tax return