What is a Health Savings Account (HSA)?
An HSA is designed to help you pay for out-of-pocket medical expenses. You qualify for an HSA if you have a high-deductible health insurance plan. Contributions to HSAs can be made pre-income tax, which allows you to make withdrawals for qualified medical expenses tax-free.
Choose a theme for the callout box above:
Benefits Of An IncredibleBank HSA
Up to 0.45% APY
Earn interest monthly on tax-free contributions that can be used for medical expenses or retirement funds.
Choose your own provider
You have the flexibility to choose your own healthcare provider, services and products. Shopping around is always a tremendous benefit.
Rollover to the next year
The funds you don't use in your HSA rollover to the next year, and years after, earning tax-free interest every year.
What can my HSA funds be used for?
Health insurance deductibles
Vision care (eye exams and eyeglasses)
Prescription drugs and insulin
Hospital and physical therapy bills
Wheelchairs and walkers
How Do I Qualify For An HSA?
1. You need a high-deductible health insurance plan (HDHP)
For the year 2023, this is defined by the IRS as a health insurance plan with a deductible of at least $1,500 of coverage for an individual, or $3,000 for a family
2. Your health plan must conform to an out-of-pocket maximum
For 2022, the out-of-pocket maximum for an HSA qualified health plan can’t be more than $7,500 for individual coverage or $15,000 for family coverage
3. You must qualify from year-to-year.
If your plan changes and no longer qualifies, you can’t make additional contributions to your HSA - however, those funds will always be yours to use for allowed medical purposes.
Choose a theme for the callout box above:
Maximize Your Wealth Through Your HSA
Flexibility After 65
Before age 65, the money in an HSA can only be used tax-free for qualified medical expenses. If you withdraw your HSA funds for anything else, the money will be taxed, plus you will pay a 20% penalty in addition to the taxes. After age 65, how you decide to use your HSA funds becomes far more flexible. Although money used for nonmedical expenses will be subject to federal and state income taxes (in most cases), after 65 you will not be subject to the 20% penalty fee when you use your HSA for other expenses.
Maximize Compound Interest
We'll keep it simple: Even your interest earns interest. So the longer you keep funds in your account, the more interest it earns.
If you are enrolled in Medicare, you are no longer eligible to make HSA contributions. However, your options expand for how you can use the money in your HSA account. Fund your dream trip, purchase that vacation home, and make your retirement incredible.
Open your IncredibleBank HSA today to get started taking advantage of all the benefits it has to offer. Make pre-income tax contributions and pay for tax-free qualified medical expenses. Earn tax-deferred interest on your balance. Get your funds earning interest, and your interest earning you more interest. And once you retire, enjoy more flexibility with how to use your funds.
Triple Tax Benefits
Your contributions are tax-deductible up to your annual maximum
Just like an IRA or 401(k), your invested HSA funds grow tax-deferred
When you withdraw from your account for eligible health-related expenses, those are 100% tax free
How To Use The Mobile App
Mobile Banking allows you to securely manage your finances from nearly anywhere with a few taps or swipes on your phone or tablet. With the IncredibleBank Mobile app enjoy the convenience of:
- Send money with Zelle®
- Touch ID login access
- Mobile deposit
- Mobile bill pay
- Mobile wallet
- Geolocate the nearest surcharge-free MoneyPass™ ATMs
Here's What Our Customers Have To Say
Average Rating: 4.8 Stars (Over 250 reviews)
"They have always been helpful, and also promptly notify us if there is a potential fraudulent use of our debit card number somewhere else. Service has always been fast and efficient."
Dennis C. - IncredibleBank Customer
"Professional and personalized service. Always ready to customize a plan that’s best for you."
Jan L. - IncredibleBank Customer
"The staff is knowledgeable and friendly. Those are the traits I look for in a bank. I want you to know how your products can help my business and then I want you to be courteous as issues or questions come up. I've found that with IncredibleBank."
Donna F. - IncredibleBank Customer
Frequently Asked Questions
What is an HSA?
It's an individual account that works hand in hand with an HSA-eligible high-deductible health plan (HDHP). Eligible contributions are tax-deductible, and you can use your HSA money tax-free to pay for qualified medical expenses for you, your spouse, and your qualified dependents. You can choose to invest some or all of your HSA money for potential growth to help pay for qualified medical expenses in retirement. If it grows, that growth is also tax-free. Plus, your HSA is not "use-it-or-lose-it"—the account belongs to you, and your contributions can compound year after year.
Is an HSA different from a flexible spending account (FSA)?
Yes. HSA money is not "use-it-or-lose-it," unlike an FSA, and your entire HSA balance carries over from year to year, forever. In general, HSAs cover a broader variety of qualified medical expenses than FSAs. Also, FSAs are generally sponsored by your employer, while your IncredibleBank personal HSA is a brokerage account owned by you. That means your HSA is always yours, even if you change employers or move to a different state.
What are the tax benefits for HSAs?
HSAs are tax-advantaged in three ways. First, personal HSA contributions using after-tax money may be federal income tax-deductible. If you have an HSA through your employer, you can make pre-tax payroll contributions—this type of contribution saves more on taxes than tax-deductible after-tax contributions. Second, spending your HSA money on qualified medical expenses is free of federal income taxes. Third, if you invest some or all of your HSA money, any growth is also tax-free.
How do I know if I'm eligible for an HSA?
You're eligible to open and contribute to an HSA if:
- You're covered by a high-deductible health plan on the first of the month
- Your health plan also needs to conform to an out-of-pocket maximum
- You're not enrolled in Medicare
- You cannot be claimed as a dependent on someone else's tax return
What fees are associated with IncredibleBank HSAs?
We try to keeps fees as minimal as possible. And we never try to hide the fees we do have. You can find all of the fees and service charges on our Schedule of Fees.
What happens to my HSA if I change jobs or leave my company?
Your HSA and your balance are always yours, even if you change employers or move to another state. You can contribute to your HSA—even an HSA offered by your previous employer—as long as you continue to meet eligibility requirements. Even if you become ineligible to contribute to your HSA, you can spend your HSA money tax-free for qualified medical expenses any time, including through retirement.
What if I retire and haven't used all my HSA money?
Your HSA is always yours, so you can still spend your HSA money on qualified medical expenses with no federal income taxes or penalties in retirement.
Retirement-related qualified medical expenses, covered by your HSA, could include:
- COBRA coverage costs
- Health care coverage while you’re receiving unemployment benefits
- Medicare premiums other than Medicare Supplemental coverage
- Qualified long-term care coverage
If you choose to use your HSA money for something other than qualified medical expenses, you will be responsible for paying federal income taxes on it and may be penalized if you’re under age 65. You’ll also still be eligible to contribute to your HSA in retirement as long as you aren’t enrolled in Medicare or covered by an ineligible health plan.
How do I withdraw or spend money from my HSA?
IncredibleBank will issue you a debit card that is linked to your HSA, and can be used for medical related expenses. Here is a brief list of what the funds can be used for, but the IRS published a complete list found here:
- Office-visit co-payments
- Health insurance deductibles
- Dental expenses
- Vision care (eye exams and eyeglasses)
- Prescription drugs and insulin
- Medicare premiums
- Hearing aids
- Hospital and physical therapy bills
- Wheelchairs and walkers