HSA Eligibility

Health Savings Accounts (HSAs) give you another option for managing the high costs of healthcare. With HSAs, you have more control over your money. You can invest money for current and future medical expenses and grow it tax-free (consult your tax advisor for details). Unlike flexible spending accounts, which are controlled by employers and have a use-it-or-lose-it limitation, HSAs are portable and belong to the consumer for life. HSAs prove especially beneficial for small businesses. Traditional healthcare insurance is often too expensive for small businesses to offer to their employees. With a high-deductible plan and corresponding HSA, business owners can offer employees the healthcare security they need.

To qualify for an HSA, you must meet the following requirements:

  • You must be covered by a qualified high deductible health plan (HDHP).
  • You must have no other health coverage, including a spouse's plan that provides benefits covered by your HDHP. You can have accident, disability, dental, vision or long-term care coverage or insurance that provides benefits for a specific disease or illness, a fixed amount for hospital stays or liability coverage, such as workers' compensation.
  • You are not enrolled in Medicare.
  • You do not receive health benefits under TRICARE.
  • You have not received Veterans Administration (VA) benefits within the past three months.
  • You cannot be claimed as a dependent on some else's tax return (consult your tax advisor for details).
  • You are not covered by a general purpose health care flexible spending account (FSA) or health reimbursement account (HRA). Limited-purpose FSAs and HRAs are permitted.

A High Deductible Health Plan, also known as an HDHP is a healthcare option that often offers a lower monthly premium in exchange for a higher deductible. This type of plan is often paired with a health savings account option by employers.

Yes, you can have some additional coverage, called “permitted insurance,” including:

  • Specific disease or illness insurance
  • Accident, disability, dental care, vision care and long-term care insurance
  • Discount card such as a pharmacy card
  • Insurance that provides a fixed payment per day (or other period) for hospitalization

Contributing to Your HSA

No. HSAs are individually owned. However, you may authorize your spouse to be a signer on your HSA to make contributions and withdrawals.

Anyone can contribute to your HSA.

There are several ways you can contribute to your HSA – employer payroll deduction, online transfers in your HSA Central account, and transferring your existing funds.

The IRS sets limits each year on how much you can contribute to a single HSA plan or a Family HSA plan. There are no income limits, but you do need to be enrolled in a High Deductible Health Plan (HDHP). The IRS has extended the 2019 tax filing deadline to 7/15/2020, allowing you to continue making HSA contributions for the 2019 tax year until that time. The maximum contribution limits for 2019 are as follows: 

Single Plan - $3,500 maximum contribution limit, with a minimum deductible of $1,350 and a maximum out-of-pocket cost of $6,750. 

Family Plan - $7,000 maximum contribution limit, with a minimum deductible of $2,700 and a maximum out-of-pocket cost of $13,500. 

Any amount contributed over the allowable limit will have to count toward your taxable income. The IRS may have you pay a six percent excise tax on any excess contributions.  If you’ve over-contributed, you can have excess contributions returned to you by completing and submitting the HSA Distribution Form. Be sure to check the Excess Contribution Removal box and include that date(s) when contributions were made resulting in contributions made above the contribution limit based on your coverage level.

Generally the tax deadline is April 15 of the following year. The 2019 HSA contribution deadline has moved from April 15, 2020 to now be July 15, 2020.

Tax Advantages

There are two tax documents that are important if you have an HSA: 1099-SA and 5489-SA

1099-SA

This tax document is used to report any distributions, or withdrawal of funds from your HSA during the 2019 tax year. All of your distributions from your HSA must be reported on IRS Form 8889 before filing 2019 taxes. 

5498-SA

The 5498-SA form reports all contributions to your HSA for 2019, including those contributed for 2019 between Jan. 1, 2020 and the tax filing deadline. It is important to know that this form is only informational and does not need to be filed with your income tax return. But it’s a great way to make sure you’re taking full advantage of the allowed annual HSA contribution amounts.

How can I access these tax documents? 

You can access your tax documents while logged into your HSA Central account and clicking on “Tools & Support.” From there, scroll down the page and look for the “HSA Tax Documents” link under the Documents & Forms section. From there you can click on each document to then print or download.  

What do I need to do with these tax documents? 

These tax documents may be printed or downloaded for you to complete your 2019 tax filing. Your 1099-SA tax form must be filed with your 2019 tax filing, and the distributions found on your 1099-SA document must also be recorded on the IRS Form 8889 before filing 2019. The 5498-SA tax form is for your own informational purposes and does not have to be included in your yearly tax filing. Make sure to consult with your tax professional if you have any questions about these documents. 

Why doesn’t my W-2 match the Form 5498.SA? 

If the contributions on your W-2 don’t match your Form 5498-SA, you most likely made after-tax contributions or contributions between January 1 and tax day for the previous year. 

 

You can claim a tax deduction for your HSA contributions, up to the predetermined 2019 contribution limit, even if you do not itemize your deductions on the IRS Form 1040. Any employee payroll deferral or employer pre-tax HSA contributions that are reported on the IRS Form W-2 as non-taxable will be excluded from your gross income.

Yes. As long as the qualified health care expense occurred after you opened the HSA, you can pay or reimburse yourself with HSA funds. Keep copies of your receipts to verify your funds were used for qualified health care expenses and not paid for by another source or taken as an itemized deduction for a prior tax year. Consult your tax advisor for details.

Yes. Annual contributions should be made by your tax filing deadline. Generally, April 15 of the following year. Consult your tax advisor for details.

Those funds are considered part of your gross income and subject to income tax plus a 20 percent IRS penalty. Funds used after an account holder's death or disability or after age 65 are not subject to the 20 percent penalty. Consult your tax advisor for details.

Unused balances roll over from year to year. You won't lose your money if you don't spend it within the year.

For a complete list, visit irs.gov or view our list here. Consult your tax advisor for details.

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Health savings accounts offer a triple-tax advantage* in that deposits are tax-deductible, growth is tax-deductible, and spending I tax-free. All contributions to your HSA are tax-deductible, or if made through payroll deductions, are pre-tax which lowers your overall taxable income.
For more information visit our HSA Tax Advantages section.

By offering a high-deductible health plan your employees are eligible to participate in a health savings account. This allows you as the employer to make tax-free contributions to your employees. Employers can also save on payroll taxes for HSA contributions.

Customer FAQs

You can deposit a check to a bank account and transfer the funds to your HSA Central HSA by selecting Make HSA Transaction in the HSA Central Mobile App or by logging into HSACentral.net.

You can mail a paper check contribution with an HSA Contribution Form. This form can be printed from HSA Central under the Tools and Support tab or by calling HSA Central Consumer Services to request the form.

You can log in to see your Health Savings Account information by visiting HSACentral.net and selecting the Log in button. Under New User?, select create your new username and password. Then follow the prompts and establish your security questions.

If your card is lost or stolen, you have two options to report it. You can log into HSACentral.net or the HSA Central Mobile App to report your card lost/stolen under the Accounts Tab or by calling (833) 232-4676.

You can access your new account number in your HSACentral.net online portal. Your account number is displayed under the Accounts Tab in the upper right hand corner. Your new routing number is 086519531.

Your new HSA Debit Mastercard can be used on qualified medical expenses and at qualified healthcare merchants. Most major pharmacies, discount stores, department stores, and supermarkets will accept your card. Visit www.sig-is.org to learn more about qualifying stores. If your store does not qualify, your card may decline due to IRS regulations.

 This icon indicates a link to third-party content. By clicking on the link, you will leave our website and enter a site not owned by the bank. The site you will enter may be less secure and may have a privacy statement that differs from the bank. The products and services offered on this third-party website are not provided or guaranteed by the bank.
Mastercard is a registered trademark of Mastercard International Incorporated.