- Tab 1HSA with CSB
- Tab 2Benefits
- Tab 3Contributions
- Tab 4Distributions
- Tab 5HSA and Medicare
- Tab 6Calculators
Attention HR Directors - Important Instructions for Application
What Is a Health Savings Account?
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)?
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.
- Access to your account via CSB Online Banking.
- Online BillPay service through CSB Online Banking
How do Contributions Work?
- A minimum balance is required to open the account. Please see our Personal Checking, Savings, and CD page for details.
- 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 www.irs.gov.
- 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 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.
- 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 may be subject to an excise tax.
- 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.
How Can I Contribute to My HSA?
Contributions can be made in several simple, convenient ways:
- Transfer through CSB’s Online Banking.
- Automatic transfer from another CSB account
- Automatic payroll deductions (with employer sponsored HSAs)
- Employers can fund their employees’ HSA.
- By mail
- In person
- At an ATM
How Do I Determine My Contribution Limit?
Contributing to your HSA through Payroll Deductions
What Happens If I Change Employers?
How Do Distributions Work?
Qualified Tax-Free Distributions:
- Individuals covered by HDHP
- Spouse of individual
- Dependent of individual
- Spouse and dependent do not need to be covered by HDHP
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 online BillPay service.
- Medical expenses can be paid “out of pocket” and later reimbursed to you from your HSA.
Who Verifies That Distributions Are Used for Qualified Medical Expenses?
What If I Don’t Use All of My HSA Funds in a Year?
HSA and Medicare
What You Need to Know
- 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 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.