Health Savings Account

What is a Health Savings Account (HSA)?

An HSA is a special savings account that allows you to set aside pre-tax money for future qualified medical expenses. You can lower your overall healthcare costs by using pre-tax dollars in an HSA to pay for deductibles, co-payments, co-insurance and other medical expenses. 

How do I qualify?

If you are enrolled in a high-deductible health insurance plan (HDHP) as defined by the government, you can qualify for an HSA. For additional information regarding qualifications, go to www.healthcare.gov.

How does an HSA work?

Open an HSA account at any of our branches or on our website.  Decide how much to contribute to your HSA account. Learn about contribution restrictions at www.healthcare.gov. You can easily set up automatic payroll contributions directly from your employer. 

Unlike a Flexible Spending Account, your HSA balance rolls over each year, so you never have to worry about losing your savings.

At age 65 and enrolled in Medicare, funds can be used for medical expenses or any purpose but may be subject to income tax if not used for IRS-qualified medical expenses.

What are the advantages of an HSA?

Health Savings Accounts offer a way to save and pay for healthcare expenses if you have a high-deductible health plan. With an HSA at State Street Bank, you will earn interest on your unused funds. The interest earned is tax-deductible.  The funds do not expire. You can take your HSA with you if you change jobs or switch to another high-deductible health plan.