Health Savings Accounts

Because planning for your health shouldn’t be complicated, an HSA gives you a simple, flexible way to save for medical expenses.

What is a Health Savings Account?

A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers who are enrolled in a high-deductible health plan (HDHP). The funds in the HSA are used to pay for qualified medical expenses at any time without federal tax liability or penalty. Annual contribution limits frequently change, so please see on of our Personal Bankers or visit IRS.gov for current limits. (Please seek legal advice regarding qualification guidelines before opening a Health Savings Account.)

Benefits of an HSA

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    Balance Rolls Over Each Year

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    Contributions Lower Tax Liability

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    The Account is Always Yours

Account Details

Monthly Fees:
  • $3 monthly maintenance fee
  • No minimum to open the account
  • No minimum balance requirements
Eligibility: 
  • You must be covered under a high-deductible health plan (HDHP)
  • You have no other health coverage except permitted coverage
  • You are not enrolled in Medicare
  • You cannot be claimed as a dependent on another person's tax return
  • Under the last-month rule, you are considered to be an eligible individual  on the first day of the last month of your tax year (December 1 for most taxpayers) 
Qualified Medical Expenses:
  • Diagnosis, cure, mitigation, treatment, or prevention of disease and treatments affecting any part or function of the body. They include the cost of equipment, supplies, and diagnostic devices needed for these purposes. They also include dental expenses. (Examples include, but are not limited to: body scan, crutches, hearing aids, prescribed medicines, dental treatment, or psychologist.)
  • Insurance Premiums. You cannot treat insurance premiums as qualified medical expenses unless the premiums are for the following:
    • Long-term care insurance
    • Health care continuation coverage (such as coverage under COBRA) 
    • Health care coverage while receiving unemployment compensation under federal or state law. 
    • Medicare and other health care coverage if you are over 65 (other than premiums for a Medicare supplemental policy, such as Medigap

IRS Publication 502, Medical and Dental Expenses, contains a partial list of qualified medical expenses.

NOTE: Violations - non-qualified uses of Health Savings Account Funds are subject to taxation and a 20% penalty. The 20% penalty does not apply if the Health Savings Account holder is age 65 or older, is permanently disabled, or dies.

Frequently Asked Questions

The information provided is for general information only and is not intended to provide specific advice or recommendations for any individual. It is important to note that the IRS may provide additional guidance on new rules, and therefore, the information provided is subject to change. We suggest that you consult your attorney, accountant, financial or tax advisor with regard to your personal situation.

  • An insurance plan with lower monthly premiums, but higher upfront costs.

  • The government has set certain dollar limits for an insurance plan to determine whether it is a high-deductible health plan. Check with your insurance provider to see if your health plan is HSA-compatible.

    Minimum Annual Deductible for 2025: Self-Only: $1,650; Family: $3,000

    Maximum Out-of-Pocket Expenses for 2025: Self-Only: $8,300; Family: $16,000

    Minimum Annual Deductible for 2026: Self-Only: $1,700; Family: $3,400

    Maximum Out-of-Pocket Expenses for 2026: Self-Only: $8,500; Family: $17,000

    Note: These limits are revised each year to reflect the cost of living.

    *Deductibles, co-payments, and other amounts, but not premiums.

  • 2025: $8,550 (family); $4,300 (individual) 

    2026: $8,750 (family); $4,400 (individual)

    Note: These limits are revised each year to reflect cost-of-living increases.

  • Yes, you can take advantage of additional contributions as follows: 

    Catch-up contribution limits as of 2026: Self-only & Family $1,000

  • Businesses structured as sole proprietorships and the self-employed are excellent candidates for Health Savings Accounts.

    • A plan that includes a Health Savings Account can save money with the lower premiums you have in a High Deductible Health Plan.
    • This strategy also protects the employer against the possibility of catastrophic healthcare expenses.

  • If you have a Health Savings Account, you must report all contributions and distributions on your individual tax return

    • Your W-2 will show your employer contributions and distributions on your individual tax return.
    • The IRS receives a report of all contributions and distributions you make from your custodian or trustee where the Health Savings Account is held.