Health Savings Account Tax Advantages

Learn about the unique tax benefits a HSA 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 medical 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 medical expenses or at a 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 medical expenses
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.
Keeping Track:
Accountholders are responsible for keeping records/receipts for all medical 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.

Large-Ad IRA