Health Savings Account (HSA)

Frequently Asked Questions

What is an HSA (Health Savings Account) ?

A Health Savings Account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA.

Who is eligible for an HSA?

You must be covered under a qualified high deductible health plan (HDHP)  on the first day of the month the HSA is established.  A HDHP has a higher annual deductible than typical heath plans. Check with your tax advisor or your employer to see if your health plan qualifies.

Other eligibility requirements

  • You must not be enrolled in Medicare.

  • You must not be eligible to be claimed as a dependent on another person's tax return.

  • You generally must not have any health coverage, other than an HDHP.

What are the benefits of an HSA?

  • You have full control over the account and you have the flexibility to contribute any amount up to the maximum contribution limit for the year.

  • The contributions remain in your account until you use them. They do not expire.

  • Distributions may be tax free if you pay qualified medical expenses.

  • An HSA is "portable." It stays with you if you change employers or leave the work force.

How can your HSA funds be used?

HSA funds can be used for a variety of qualified medical , dental and vision expenses.

Why choose 1st Alliance for your HSA checking account?

  • EMV Debit Card for easy access to your funds.

  • You have the option to order checks.

  • No minimum deposit to open.

Contribution Limits for 2022

Individual  $3,650

Family  $7,300

Visit www.irs.gov for current HSA contribution limits.

Contact a Personal Banker for more information about our Health Savings Account (HSA)

The information provided should not be considered tax, financial, or legal advice. Please consult your tax or financial advisor if you have questions.

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