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Home > Personal Banking > Health Savings Account > Health Savings Account Tax Advantages
  • Health Savings Account Tax Advantages

    Learn about the unique tax benefits a Health Savings Account creates for accountholders.

     

    Tax Advantages:

    • Contributions are 100% tax-deductible
    • Funds grow on a tax-deferred basis and if the funds are used for an eligible expense they are tax-free
    • Funds roll over from year to year, and funds used after age 65 can be used tax-free for eligible expenses or at your normal tax rate for any other reason
    • Federally qualified Health Savings Accounts are tax-deductible, tax-deferred and tax-free
      • Tax-deductible: Contributions to your HSA can be deducted from your gross income
      • Tax-deferred: HSA funds grow without being subject to taxes until they are used for non-eligible medical expenses
      • Tax-free: The funds in an HSA are completely tax-free when used for eligible expenses
       
    • Funds used for an expense that are not eligible prior to age 65 are subject to income tax plus a 20% IRS penalty

    Federal vs. State Tax Benefits

    Health Savings Accounts are made available through the federal government on a tax-favored basis. To determine if your state also provides tax benefits for Health Savings Accounts, please contact your state tax resource.

    Keep Track with Online Banking

    Accountholders are responsible for keeping records/receipts for all eligible expenses when the HSA has been used. To help, we have several tools available through our online banking program. Get access to:

    • Account activity, as far back as 18 months -- and with electronic statements, you can view the past 7 years worth of statements
    • Images of your checks written
    • Records of your debit card transactions.

    On the Go - Use Mobile Banking

    With Mobile Banking, you can use your phone to:

    • Check balances
    • Pay bills
    • Transfer money between your accounts.

    Please note: Online and Mobile banking does not provide a copy of the receipt

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