Health Savings Accounts


What Is a Health Savings Account?

  • A Health Savings Account, more commonly known as an HSA, is an account established exclusively for the purpose of paying or reimbursing qualified medical expenses for you, your spouse, and your dependents, on a pre-tax basis. These expenses include medical, dental, vision, and other qualified expenses. 
  • It also provides a way for individuals to pay for expenses that may not be paid for by a medical plan (i.e. dental, vision) on a tax-free basis.
  • An HSA is individually owned and controlled entirely by an individual/employee. All funds invested in an HSA remain the property of the account owner. Account balances roll over from year to year and accumulate, tax deferred. Distributions from your HSA for qualified medical expenses are also tax-free.

Why an HSA?

  • An HSA is a great way to manage and protect your short and long term wealth goals, as well as save for future medical expenses.
  • The money in your HSA can sit in the account and earn interest as long as you’d like and you can keep the account with you through any changes in employers, health insurance coverage, or location. 
  • Unlike with a Flexible Spending Account (FSA), your funds will roll-over year-to-year with no minimum annual withdrawals and no limits on amounts allowed to accumulate and sit in your account.
  • HSA contributions reduce taxable income when contributed through payroll deductions. More details on contributions can be found below.
  • Distributions from the account are also tax free, as long as they are used for medical expenses.
  • A beneficiary can be named for an HSA. If the beneficiary is a spouse, the account remains an HSA, but if the beneficiary is the estate or any individual that is not the spouse, the HSA ceases to exist and the funds are subject to income tax.

Am I Eligible for an HSA?

To be an eligible individual and qualify for an HSA, you must meet the following requirements:

  • Be covered under a High Deductible Health Plan (HDHP)
  • Not be covered by any other health plan that is not an HDHP (with certain exceptions for plans providing certain limited types of coverage).
  • Not be enrolled in Medicare.
  • Not be claimed as a dependent on another person’s tax return.

What Is a High Deductible Health Plan (HDHP)?

  • A High Deductible Health Plan (HDHP) is a plan that has an annual deductible that is typically higher than traditional insurance plans, and a maximum annual out-of-pocket for single and family coverage. These amounts may change annually.

What Are the Benefits of Opening an HSA at CSB?

Your HSA account at CSB will be a checking account, giving you easy access to your funds. Some of the features an HSA at CSB has to offer includes:

  • Our HSA checking account offers a tiered interest rate tied to the balance in your account. Interest is paid to the account on a monthly basis, helping you to earn the maximum rate possible. The earnings on your account are 100% free from federal income tax while they remain in the HSA.
  • Paying medical expenses is effortless with your CSB HSA debit card.
  • Up to two free HSA debit cards can be issued per account, one of which can be used by an authorized signer designated by you.
  • If you prefer to write checks, we will pay the printing cost for the first 25. Your checks will have “Health Savings Account” printed on them for easy record-keeping.
  • Free access to your account via CSB’s Online Banking.
  • Free Online BillPay service for your HSA through CSB.

Enrollment Options

Enrolling in an HSA is easy and can be done in three ways:

  • Enroll directly with a CSB Customer Service Representative at any of our Banking Centers.
  • Enroll through your health insurance provider through your employer.
  • Enroll through your health insurance provider for your individual health plan.

Contributions to an HSA

  • Once enrolled in an HSA, you may decide how and when you would like to contribute to your account. Our staff would be happy to help you find the most efficient approach for you to fund your account.
  • A minimum balance is required to open the account. Please see a CSB Customer Service Representative for balance requirements and any miscellaneous fees that could reduce earnings on the account.
  • This is an interest bearing account and rates may change after the account is opened. Rates are subject to change daily.
  • The maximum amount allowed to be contributed to an HSA per year is different depending on single or family coverage and may change on an annual basis. Current HSA contribution limits can be found at
  • For customers age 55 and over, the IRS allows for an additional catch-up contribution provision to be made into their HSA.

Who Can Contribute?

  • Contributions can be made by either the individual/employee, the employer, or both.
  • Contributions can also be made by someone else on behalf of the individual/employee.

Contribution Rules

  • Contributions must be made in cash, check, or direct deposit.
  • Contributions must cease once individual is enrolled in Medicare.
  • Contributions can be made through an employer’s cafeteria plan (sec. 125).
  • For self-employed individuals, contributions may be tax-deductible.
  • Employer contributions cannot be discriminatory.
  • Contributions for a given tax year can be made as late as April 15 of the following year.
  • Excess contributions are not tax deductible, and will have an excise tax of generally 6%.
  • Contributions are tax deductible - Contributions made by anyone other than your employer are deductible regardless of whether you itemize deductions. However, you cannot also deduct the contributions as medical expense deductions.

(Consult with your tax or legal professional for guidance.)

How Can I Contribute to My HSA?

Contributions can be made in several simple, convenient ways:

  • Transfer through CSB’s Phone Banking 330.674.2720 / 888.438.2720.
  • Transfer through CSB’s Online Banking.
  • Automatic transfer from another CSB account
  • Automatic payroll deductions (with employer sponsored HSAs)
  • By mail
  • In person
  • At an ATM
  • Employers can fund their employees’ HSA.
  • Rollovers are allowed from an Archer Medical Savings Account or other HSA, although they are generally NOT permitted from a Flexible Spending Account or Health Reimbursement Account. Rollovers are not subject to contribution limits.
  • Please note all contributions made in any form of electronic payment will be credited for the calendar year in which they are made.
  • Monthly statements are provided for easy tracking purposes.

(Consult with your tax or legal professional for guidance.)

How Do I Determine My Contribution?

  • Individuals who are eligible on the first day of the last month of the taxable year (December for most taxpayers) are allowed the full annual contribution (plus catch-up contribution, if 55 or older by year end), regardless of the number of months the individual was an eligible individual in the year. 
  • For those who are no longer eligible individuals on that date, both the HSA contribution and catch-up contribution apply pro-rata based on the number of months of the year a taxpayer is an eligible individual.

Contributing to your HSA through Payroll Deductions

  • When money is contributed to your HSA through a payroll deduction, where the money is taken directly out of your paycheck by your employer and deposited into your HSA, the money is put into your HSA before any taxes (payroll, federal/state/local income, and FICA) are taken out.
  • Contributions through payroll deductions will save and earn the account holder more money as interest grows on the untaxed money contributed, rather than the lesser amount that would be deposited by the account holder personally after all of the taxes have been taken out of their paycheck.
  • Contributions made through payroll deductions are automatically included on your W2.

What Happens If I Change Employers?

  • The funds in your HSA still belong to you. The account can remain open and additional contributions can be made, as long as you are still covered under a HDHP.
  • If a HDHP no longer exists, contributions can no longer be made to the HSA. However, qualifying distributions can still be made until the account has a zero balance.

How Do Distributions Work?

  • A distribution is tax-free if used for “qualified medical expenses,” including medical, dental, and vision.
  • To determine if your expense is a qualified medical expense, you may refer to
  • Distributions for non-qualified expenses are taxable, included in gross income for tax purposes, and assessed an additional penalty of generally 20%.
  • At age 65, distributions for non-qualified medical expenses will be taxed as ordinary income. Generally, no additional 20% penalty will be incurred.
  • If a distribution is due to death, and the beneficiary is the spouse of the HSA owner, the spouse becomes the owner of the HSA. The HSA ceases to exist for all other beneficiaries.

Distributions Can Be Taken Tax-Free For:

  • Individuals covered by HDHP
  • Spouse of individual
  • Dependent of individual
  • Spouse and dependent do not need to be covered by HDHP

(Consult with your tax or legal professional for guidance.)

How Do I Pay My Bills?

  • Your CSB HSA provides you the flexibility to pay by check or debit card.
  • You may also choose to pay online by using our free Online BillPay service.
  • Medical expenses can be paid “out of pocket” and later reimbursed to you from your HSA.

(Consult with your tax or legal professional for guidance.)

Who Verifies That Distributions Are Used for Qualified Medical Expenses?

  • You, as the HSA owner, are responsible for verifying that distributions are being used for qualified medical expenses. Participants in an HSA need to become excellent “receipt keepers” as you are responsible for providing proof to the Internal Revenue Service (IRS) should they request it. We strongly encourage you to keep your records regarding your HSA in order.

What If I Don’t Use All of My HSA Funds in a Year?

  • Any unused balance remaining in your HSA at the end of a year can be used in future years. You will never lose the funds contributed, but rather they carry over from year to year.

My HSA and Medicare

  • Having an HSA, and the amount of money in that HSA, will not be a factor when Social Security is determining social security benefits- you can save as much and for as long as you want.
  • When an HSA owner starts receiving Medicare coverage, premiums get added to the eligible expense list of HSAs.
  • Once enrolled in Medicare, the owner will generally not be penalized the 20% for withdrawing money from their HSA for non-medical expenses, but the money will be taxed normally.
  • The money in your HSA can still be used when enrolled in Medicare, but you cannot make contributions anymore.

HSA Calculators

HSA Contributions Calculator HSA Savings Calculator HSA Goals Calculator HSA vs. Traditional Calculator

For more information about Health Savings Accounts, contribution and distribution limits, and deadlines, please talk to a CSB Customer Service Representative or visit

Prepared for informational purposes only. This information is subject to change, and other terms, restrictions, and fees may apply. Normal account opening standards will apply. Please consult with a legal and tax professional for specific guidance on HSAs. For more information on account opening related matters, please consult with a CSB Customer Service Representative.