Banking - Personal

HealthStyle (HSA) Account

HeathStyle, a Health Savings Account – or HSA is a tax-advantaged way to save for medical expenses if you are covered under a high deductible health plan (HDHP). An HSA is a tax-exempt account that you can establish for the purpose of paying for your or your family’s medical expenses.

HealthStyle HSA offers three important tax advantages:

1. Tax-Deductible Contributions: HealthStyle HSA contributions may be tax-deductible on your federal income tax return, regardless of your level of income or whether you itemize deductions
2. Tax-Free Earnings: Earnings are 100% free from federal income tax while they are in your HSA. This means your balance will grow faster than a comparable taxable investment.
3. Tax-Free Distributions: Distributions used to pay for qualified medical expenses are completely tax-free.

Who may contribute to an HealthStyle HSA?

You, your employer, or any other individual may contribute to your HSA if you are eligible for an HSA contribution. To be eligible, you must meet the following criteria:

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

A HealthStyle HSA may be the “ounce of prevention” you need to protect against high medical costs. And remember, the sooner you start contributing, the more money you’ll have when you need it most!

The following websites may provide additional information:

• Internal Revenue Service information on HSA Accounts. 
• US Treasury for information on HSA Accounts.

Important: the tax rules are often complicated. This information is meant solely as an overview. Before making any investments, you should confer with a qualified tax advisor.

For a complete overview of rates, click here. To view our Truth in Savings Disclosure, click here.

Download our HealthStyle product sheet.