Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

HSA Rules and Regulations You Should Know


If you have a high-deductible health insurance plan, a Health Savings Account (HSA) can help you save for future medical expenses. Health Savings Accounts were established by the federal government as part of the Medicare Prescription Drug, Improvement, and Modernization Act. Like any federal program, HSAs have rules you must follow in order to qualify, make contributions to your account, and withdraw your funds.

HSA Rules and Regulations

Rules for Qualifying

According to federal guidelines, in order to qualify for an HSA, you:

  • Must be covered under a high deductible health plan (HDHP) on the first day of the month
  • Have no other health coverage (some exceptions apply)
  • Are not enrolled in Medicare
  • Cannot be claimed as a dependent on someone else’s prior year tax return

Rules for Making Contributions

Each year the IRS determines the amount that you, your employer, or anyone else can contribute to your HSA. Determine current contribution limits on the IRS website.

Rules for Using Your Savings

You can use the money in your HSA account for qualified medical expenses determined by the IRS. Typically, HSAs are used for treatments, prevention and diagnosis of conditions and diseases.

HSAs at First Bank*

A First Bank Health Savings Account provides you a tax-free distribution from your account any time you need to pay for medical expenses.** First Bank HSAs also come with online banking and bill pay to help you manage your account, and you can access your funds from anywhere with our HSA-specific debit card and checks. Other benefits include:

  • Tax deduction for contributions even if deductions are not itemized
  • Contributions made by employer may be excluded from gross income
  • Contributions accumulate until used
  • Tax free earnings
  • HSA may be transferred or rolled over to another HSA
  • Complete IRS reporting available
  • FDIC insured

To learn more about HSA rules and sign up for an account today, visit a First Bank branch near you.


*Member FDIC.

**Qualified medical expenses, as explained in IRS Pub. 502, include amounts paid for doctors’ fees, prescription medicines, and necessary hospital services not paid for by insurance. Qualified medical expenses may be incurred by you, your spouse, or your dependents. To be eligible for a HSA account, you must you must be covered by a high-deductible health plan (HDHP).  Learn more about HSA’s at https://localfirstbank.com/health-savings-account/. First Bank and its representatives do not provide tax advice. Each individual’s tax and financial situation is unique. Individuals should consult their tax advisor for advice and information concerning their particular situation.

———-

IRS: http://www.irs.gov/publications/p969/ar02.html#en_US_2014_publink1000204020

Trending Topics

College Savings Account in Wilmington, NC

Whether you’re a parent looking to put away money for your child’s university tuition or a high school student trying to save some spending money for college, a savings account…

How to Apply for a Small Business Loan in Florence, SC

Every successful business began with an idea. In most cases, that idea was followed by asking the common question of how to apply for a small business loan. In Florence,…

Best Savings Account Rates in Albemarle, NC

The Simple Dollar lists 100 Great Tips for Saving Money for Those Just Getting Started. At the top of the list? Finding the best savings account rates. In Albemarle, NC,…

How to Get a Personal Loan in Asheville, NC

The average credit card APR in October of 2014 was 15.07%. With such rates, sometimes a personal loan is a more cost-efficient way of getting your hands on the money…

Best Checking Account Rates In Albemarle, NC

If you live in Albemarle, NC, you can enjoy some of the best checking account rates in the state by banking with First Bank. We have two branches in Albemarle located…

Checking Account Offers – Asheville, NC

If you live in Asheville and want to open a checking account, visit your local First Bank. We offer checking accounts for individuals and business owners looking to open an…

Savings Account Interest Rates – Asheville, NC

If you’re looking to save for your future, First Bank is here to help. A savings account can be a useful tool for planned future projects, as well as a…

Small Business Loans for Women – High Point, NC

First Bank has small business loans for women who want to open a business in the High Point, NC, area. This metropolitan area currently sits at 79th on Forbes list…

Wilmington Bank

Wilmington, North Carolina, has a lot to offer, and that includes the town’s financial institutions. The very best qualities of Wilmington’s banks are evident in the five First Bank locations…

First Bank Loans

Between banks and online lenders, you have a lot of options to choose from when you need a loan. But not all loans are created equal, and First Bank loans are a step…