Health Savings Account (HSA)

Start Saving for Your Health Care Today

If you have a High Deductible Health Plan (HDHP) you may qualify for a Health Savings Account (HSA). An HSA is a type of account that helps you save money on out-of-pocket expenses like doctor visits, prescriptions, and care.

What is an HSA?

An HSA is a type of account that helps you save money on out-of-pocket expenses like doctor visits, prescriptions, and care.

Who is it Good For?

An HSA can be a good way to save for future medical expenses if you have a qualifying High Deductible Health Plan. Contributions to HSAs are tax-deductible and subsequent earnings are qualified purchases are not taxed.

What are the Advantages?

One advantage is that an HSA does not need to be depleted annually like a Flexible Spending Account (FSA) does. Therefore, HSAs can be used for long-term savings and other medical savings accounts can be rolled into your HSA.

Find the Right Account

FCB offers two types of HSAs. The first is a checking account with a VISA® debit card for purchases. The second, it an interest-earning savings account which allows for six withdrawals per statement cycle. While we’re happy to set up your accounts we recommend that you speak with a qualified tax consultant or accountant to discuss your goals and strategies.

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Health Savings Account

A Health Savings Account functions similarly to a regular savings account. It earns interest and is subject to the same transaction limitations.

Features

  • Tax-deductible contributions
  • Earnings and qualified distributions are not taxed, which helps you to cover more medical costs.
  • No “use it or lose it” policy. Unlike Flexible Spending Accounts, HSAs do not need to be depleted annually. This means you can use an HSA for long-term savings.
  • Other medical savings accounts can be rolled into HSAs
  • Move your HSA with you when you change employers or locations
  • No minimum monthly balance requirement

Considerations

  • Must be covered by a qualifying High Deductible Health Plan (HDHP) and may not also be covered by another non-HDHP plan.
  • May not be enrolled in Medicare
  • Cannot be claimed as a dependent on someone else’s tax return
  • Six withdrawals per monthly statement cycle why six?
  • A $100 minimum balance to go fee-free

Contribution Limits

  • Contribution limits depend on the HPHP Individual or family plan.
  • If you’re over 55 you qualify for an additional $1000 catchup contribution

Next Steps

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HSA – Checking Account

The FCB HSA Checking Account includes a VISA® debit card to make qualified purchases easier. In contrast to the FCB HSA Savings Account, the Checking Account is not interest-bearing.

Features

  • Tax-deductible contributions
  • Qualified distributions are not taxed, which helps you to cover more medical costs.
  • No “use it or lose it” policy. Unlike Flexible Spending Accounts, HSAs do not need to be depleted annually. This means you can use an HSA for long-term savings.
  • Other medical savings accounts can be rolled into HSAs
  • Portable: Move your HSA with you when you change employers or locations
  • No minimum monthly balance requirement

Considerations

  • Must be covered by a qualifying High Deductible Health Plan (HDHP) and may not also be covered by another non-HDHP plan.
  • May not be enrolled in Medicare
  • Cannot be claimed as a dependent on someone else’s tax return
  • Does not earn interest

Contribution Limits

  • Contribution limits depend on the HPHP Individual or family plan.

Next Steps