Members Frequently Asked Questions

A Health Savings Account (HSA) is a tax-advantaged medical savings account available to United States taxpayers who are enrolled in an HSA-eligible health plan. Your qualified health plan could be a high-deductible health plan (HDHP), Bronze plan or Catastrophic plan.  

HSAs are owned by the individual, differentiating them from company-owned Health Reimbursement Arrangements (HRAs) that are an alternate tax-deductible source of funds paired with HDHPs. And, unlike a Flexible Spending Account (FSA), HSA funds roll over and accumulate year after year if not spent, with the ability to earn tax-free interest on the account.* HSA funds may be used to pay for qualified healthcare expenses at any time without federal tax liability.

For qualified individuals covered by an HSA-eligible health plan, an HSA offers a number of benefits. Money that would otherwise be lost to high premiums could be invested in a tax-free, interest-bearing HSA.* For those with higher medical expenses, combining your eligible plan with an HSA still may provide overall cost savings as compared to a traditional plan with higher premiums and out-of-pocket maximums. Learn more about the benefits of having an HSA or use our Health Plan Comparison Calculator to determine if an HSA is right for you.

The main requirement for opening an HSA is having an HSA-eligible health plan, typically a high-deductible health plan (HDHP), Bronze plan or Catastrophic plan, that meets IRS guidelines for the annual deductible and out-of-pocket maximum. To be an eligible individual and qualify for an HSA, you must also meet the following requirements. 

• You must have a valid email address, Social Security Number and a primary residence in the United States. 
• You must be covered by the HSA-eligible health plan on the first day of the month in which you plan to start contributing to your HSA. 
• You can’t be covered by any other type of health plan, including Medicare Part A or Medicare Part B. 
• You can’t be covered by TRICARE. 
• You can’t have used your medical benefits from Veterans Administration for any non-service-connected disabilities at any time during the previous three months (to contribute to an HSA). Note: Title 38 of the United States Code, Section 101(17) defines "non-service-connected" as, with respect to disability, that such disability was not incurred or aggravated in line of duty in the active military, naval, or air service. 
• You can’t be claimed as a dependent on another person's tax return. 
• You aren’t covered by a general purpose healthcare Flexible Spending Account (FSA) or Health Reimbursement Account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.

If you’ve changed to another HSA-eligible health plan, either through a new employer or one you've purchased on your own, you may still be eligible to contribute to your HSA with HSA Bank. Refer to the eligibility requirements.  

Note: the content herein is provided for informational purposes. HSA Bank does not provide tax or legal advice. Please refer to IRS guidance, including IRS Publication 969, for additional details.

High-deductible health plans (HDHPs), as well as Bronze and Catastrophic plans, are HSA-eligible. These plans typically feature higher deductibles and lower premiums than traditional insurance plans. They are the only plan types that can be combined with a Health Savings Account (HSA) and allow for payment of qualified out-of-pocket medical expenses.

If you are covered by another health plan (such as through your spouse's employer), that health plan must meet the criteria outlined above for an HSA plan. If you are enrolled in a health plan that does NOT meet the criteria, you may NOT set up an HSA and you must stop contributing to any HSA you do have. 

You may be covered by the following plan types while still being eligible to set up an HSA: dental; vision; short- and long-term disability; life and accidental death; long-term care; Direct Primary Care (DPC) arrangements; telehealth services; and certain health Flexible Spending Accounts (FSAs), including: insurance for specific types of diseases or illnesses, such as cancer plans; hospital indemnity plans; limited-purpose FSA (dental and vision only); and post-deductible Health Reimbursement Arrangements (HRAs). 

Note: if a spouse's Flexible Spending Account (FSA) can pay for any medical expenses before the HSA-qualified plan deductible is met, you are not eligible to open an HSA. For you to participate in a health FSA and an HSA at the same time, the FSA, whether provided by your or your spouse's employer, must typically be limited to reimbursing dental expenses, vision care expenses and/or medical expenses that exceed your deductible. Check with your plan’s benefits administrator to determine if you can participate in any health FSA offered by the employer.

An HSA is a unique tax-advantaged account that you can use to pay for current or future IRS-qualified healthcare expenses. With an HSA, you'll have: 

• A tax-advantaged savings account that you use to pay for IRS-qualified expenses as well as deductibles, co-insurance, prescriptions, vision and dental care. 
  • Contributions to your HSA can be made with pre-tax dollars (for employer-sponsored plans) and after-tax dollars (for individual plans), which reduces your taxable income.  
  • Any other after-tax contributions that you make to your HSA are also tax deductible. 
  • HSA interest and earnings are tax-free.*  
  • HSA funds are also free from tax when used for IRS-qualified medical expenses. 
• Unused funds roll over from year to year. There's no "use or lose it" penalty. 
• Potential to build more savings through investing**. You can choose from a variety of HSA self‐directed investment options with no minimum balance required. 
• Additional retirement savings. After age 65, funds can be distributed for any purpose without penalty.

You can pay for a wide range of IRS-qualified healthcare expenses with your HSA, including many that aren't typically covered by health insurance plans. This includes deductibles, co-insurance, prescriptions, dental and vision care and more. For a complete list of IRS-qualified expenses, visit irs.gov or our page listing qualified medical expenses.

You can pay for IRS-qualified expenses with funds from your HSA by using your HSA Bank Benefits Card. You can also pay for your qualified expenses out of pocket and reimburse yourself later with HSA funds.

Your Benefits Card provides access to your HSA funds at point-of-sale with signature or PIN and at ATMs. The daily debit card limit is $5,000 at merchants dedicated to healthcare (e.g., a doctor’s office or hospital) and $3,500 at merchants that are not healthcare specific but offer eligible medical products and/or services (e.g., a department or grocery store). The number of debit card transactions allowed per day is limited and varies based on how the card is used or types of transactions processed. These limits exist as a safeguard against fraudulent activity. For more information, please call the number on the back of your debit card.

HSA Bank provides you with multiple options to pay for an expense with your available cash balance but exceeds the Benefits Card daily limit of $5,000. Your options include: 

1. You can pay for an expense with your external, personal account or with a credit card and then reimburse yourself by scheduling HSA transfers within your online account or app. Note: there is a daily transfer limit of $2,500 to safeguard against fraudulent activity, so multiple transfers will be required for amounts above $2,500. You can call our Client Assistance Center to request a transfer that exceeds the $2,500 limit. 
2. You can work with your provider (or hospital) to make debit card payments over multiple days. 
3. You can pay a provider through your online account. Log in to your online account or app and go to Make a Payment. There is no daily limit to pay a provider directly.

If you pay for an ineligible expense, you must report it in your annual income tax filing and pay the related income taxes, plus a tax penalty. (After age 65, the penalty does not apply.)

No. You do not need to submit any receipts to HSA Bank or file any claims. Just be sure to use the money for IRS-qualified healthcare expenses and save your receipts for tax purposes. Using our online expense tracker, you can easily enter expense information and securely upload receipts and supporting documentation — all in one convenient place.

You can pay or reimburse yourself for any eligible healthcare expenses incurred after your HSA was established.

You can use your Benefits Card at an ATM to reimburse yourself for eligible expenses paid out of pocket. A transaction fee may apply from the ATM provider.

You can use your Benefits Card to pay for doctor visits at the time of the appointment, for qualified items at a pharmacy, retailer or online as long as it is for a qualified healthcare expense. You can also use your debit card at an ATM to reimburse yourself for out-of-pocket expenses (a transaction fee may apply from the ATM provider).

You can check your HSA balance by visiting your online account, where you will have secure, 24/7 access to your account balances and transaction history. Learn more about managing your account.

You can use your HSA to cover qualified healthcare expenses for you, your spouse and any dependents included on your income tax return.

The IRS sets annual contribution limits; visit the IRS Limits and Guidelines page for more information.

Anyone may contribute to your HSA on your behalf, as long as you are HSA-eligible and the amount is within the annual IRS contribution limits.

Eligible individuals over the age of 55 (or turning 55 during the year) are allowed to make additional "catch-up" contributions to their HSAs. The catch-up amount is $1,000. Eligible spouses over 55 can only make catch-up contributions to their account. Catch-up contributions must be prorated as well. If you do not maintain HSA-eligible coverage through the end of the following year, the contributions exceeding the prorated amount for the months of actual eligibility become taxable income and are subject to penalty.

You can claim a tax deduction for contributions up to the applicable maximum contribution that you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040. Contributions up to the maximum contribution limit made by your employer may be excluded from your gross income.

Unused HSA funds roll over from year to year; there is no "use it or lose it" penalty. Funds that are rolled over continue to grow and earnings are tax-free.* At age 65, you will have the ability to use your HSA funds for any purpose, without penalty, on a taxable basis. This makes funding your HSA a great way to save for retirement.

Any unused funds in your HSA automatically roll over each year. You will not lose any unspent money in your account.

If you already have a Health Savings Account (HSA) at another institution and would like to transfer the balance to your HSA at HSA Bank, you can find the instructions on our Transfer and Rollover page.

Yes, you can invest your HSA.** Choose from a wide range of securities, including mutual funds, stocks, bonds and more. You can transfer funds between your HSA cash and investment accounts in your online account or by contacting our Client Assistance Center. Visit our HSA Investment page to learn more. 

There are many benefits to your HSA that you should consider before closing your account. Consider keeping your HSA to continue saving for your future health expenses, tax-free.* If you still feel a need to close your account, please call our Client Assistance Center at (800) 357-6246.

HSA Bank’s routing number is 075907947.

Your HSA funds are never lost due to changes in employment or health plan. If at some point you are no longer covered by an HSA-eligible health plan, you still have access to your funds and can use them to pay for IRS-qualified healthcare expenses; however, you are simply no longer eligible to make contributions.

Yes. The HSA Bank app is available on Google Play and the App Store. While it is free to download, you should check with your wireless provider for any associated fees for accessing the Internet from your device.  

Before you can use the app, you must create an online account username and password. Without a registered account, you won't be able to log in to the app.

1. You must be registered online to use the app. Without creating an online account, you won't be able to log in to the app.

2. Download the app from Google Play or the App Store.

3. Log in to the app to manage your account.

You may receive both a 1099-SA and 5498-SA from us. For more information about your HSA tax forms, view Tax Time 101.

Flexible Spending Accounts (FSAs) are tax-advantaged financial accounts that can be set-up through employers' cafeteria plans in the United States. An FSA allows an employee to designate a portion of his or her pre-tax earnings to pay for qualified expenses as established in the cafeteria plan, most commonly for medical expenses, but often for dependent care or other expenditures. The employer is also allowed to make contributions to employee FSAs, if desired, in order to offer a greater benefit to the staff. Since the money deducted from an employee's pay for transfer to an FSA is not subject to federal, state, or payroll taxes, employees can save upwards of 40% on eligible expenses, and sometimes more, depending on their tax bracket.

Enrolling in an FSA allows you to set aside pretax money from your paycheck. You will enjoy a tax savings on the money you can use for eligible health care expenses.

With an FSA, you elect to have your annual contribution deducted from your paycheck each pay period, in equal installments throughout the year, until you reach the yearly maximum that you have specified. The amount of your pay that goes into an FSA will not count as taxable income, so you will have immediate tax savings. FSA dollars can be used during the plan year to pay for qualified expenses and services. And at the end of the year, you can roll over up to $500 of your contribution to the next plan year, provided your employer's plan allows this.

Annual participant contributions are limited by The Internal Revenue Service. To view current IRS limits, visit the IRS Guidelines and Eligible Expenses page for more information.

• A Healthcare FSA allows reimbursement of qualifying out-of-pocket medical expenses. Common eligible expenses include dental treatment, orthodontia, prescription drugs, diagnostic services, hospital services and surgery, laboratory fees, obstetrical expenses, chiropractic care, physical therapy, eye examinations, glasses, contact lenses, laser eye surgery, hearing aids, smoking cessation programs, and weight loss programs to treat obesity, to name a few.

• A Limited Purpose Medical FSA works with a qualified high deductible health plan (HDHP) and Health Savings Account (HSA). A limited purpose FSA only allows reimbursement for vision and dental expenses.

• A Dependent Care FSA allows reimbursement of dependent care expenses, such as daycare, incurred by eligible dependents.

Yes. All eligible out-of-pocket expenses incurred by you, your spouse and your qualified dependents can be reimbursed from your Healthcare FSA, even if your spouse and qualified dependents are not enrolled in your employer's health plan.

The IRS sets annual contribution limits, visit the IRS Guidelines & Eligible Expenses page for more information.

Your plan document may provide for a grace period that allows you to use your remaining funds for IRS-qualified expenses incurred for up to 2 ½ months into the next year.

Alternatively, if you have an FSA or Limited Purpose FSA, you may be eligible to roll over (or carryover) a certain amount to the next plan year, provided your employer has changed the plan documents to allow this. This rollover option does not apply to Dependent Care FSAs. View the maximum IRS carryover amount.

Deductions for your Healthcare FSA will also end when your employment ends unless your employer is obligated to offer you COBRA continuation and you elect this option. If your employer is not obligated to offer you COBRA and/or you choose not to elect COBRA, you are eligible to be reimbursed for qualified expenses incurred while you were employed and the account was active. Requests for reimbursements should be submitted prior to the end of your employer's run-out period or period of time for which a claim for an expense can be submitted for a plan year that has ended or after an employee has terminated.

Health Reimbursement Arrangements (HRAs) are employer-funded plans that reimburse employees for incurred medical expenses that are not covered by the company's standard insurance plan. Because the employer funds the plan, any distributions are considered tax deductible (to the employer). Reimbursement dollars received by the employee are generally tax-free. Unused HRA dollars may roll over from year to year, if allowed per plan rules, providing a potential incentive for employees to be better stewards of healthcare spending. If employment is terminated, the employer can choose to keep unused funds.

• Your employer funds your HRA pre-tax. Because the money allocated by your employer doesn't count as income, there are no tax implications. It's kind of like getting a raise.

• Participating in an HRA is a great way to stretch your healthcare budget. An HRA usually sits alongside a health plan with higher deductible, coinsurance and copayment minimums; often these health plans have lower monthly medical premiums allowing you to save money. Some employers allow you to rollover and accumulate unused funds year after year. The more you save in your HRA, the more funds you will have to pay eligible medical expenses when they occur. An employer may also make the HRA portable so that you can take the funds with you when your employment ends or when you retire.

• HRA funds must be used for healthcare expenditures only. Approved healthcare expenditures include those expenses identified by your employer as reimbursable from the HRA that are described as Medical Expenses in Section 213(d) of the IRS code. These expenses may include deductibles, coinsurance, copayments, prescription drugs, vision care and dental care. Your employer may limit the expenses your plan reimburses; please consult with your Human Resources department for more information on what expenses are covered by your HRA.

• The IRS has a list of approved healthcare expenditures. However, your employer might have additional limitations. Examples of expenses that are not eligible for reimbursement include:

  • Medical expenses that are not defined as eligible under your employer's plan;

  • Medical expenses that do not meet IRS section 213(d) requirements (e.g., gym memberships, nutritional supplements, cosmetic procedures and surgeries);

  • Medical expenses incurred by you, your spouse or any eligible dependents prior to your effective date in the plan; and,

  • Medical expenses that can be reimbursed to you through any other source such as group health insurance.

HRAs are only funded by your employer. Your employer contributes a determined amount to your HRA. Contact your HR department for specifics on your plan setup.

Yes. An HRA is designed to cover expenses not paid by your health plan including deductibles, coinsurance and copayments as well as many expenses your health plan may not cover.

HRA funds can be used on eligible expenses determined by your employer. These typically include co-pays, health insurance deductibles and other IRS approved healthcare expenses. For more information on your plan, contact your HR department.

You can access forms by logging into the Member Website.