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

Asheville Savings

First Bank in Asheville offers savings accounts for anyone looking to get the most out of their money. Whether you’re under 18 and just starting to learn about saving or saving for your future retirement, First Bank has a...

How Much Money Should I Have Saved by the Time I am 30?

Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved. However, because everyone’s...

First Bank One Rewards Program: Learn More

There are a lot of advantages to being a First Bank credit card holder, but the First Bank One Rewards Program is the most beneficial to you. By simply using your Platinum Rewards Mastercard® or Mastercard® Business Card...

Best Savings Account Rates – Wilmington, NC

From the historic mile-long Riverwalk to the miles of pristine beaches, Wilmington, NC, has many things to offer. You may be planning to attend college, buy a house, or even retire in Wilmington, but don’t have a savings...

Your Exit Strategy: Bank Debt Financing

Thinking about passing on your business to a new generation? If it has both strong cash flow and a key employee well-positioned to take over the business, you may be a candidate for bank financing of the acquisition loan.

What Are 20-Year Mortgage Rates?

There are various factors to consider when purchasing a home, including how to finance it. Some consumers may opt for a mortgage with a shorter term while others find it beneficial to extend the mortgage. It may be best to...

How to Get a Home Equity Line of Credit

If you are thinking about taking out a loan to finance a major expense, such as home repairs or college tuition, a home equity line of credit (HELOC) or loan could be a good option. With a home equity line of credit, you...

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 on Highway 52 North and East Main Street, and we are...

Lowest Mortgage Rates High Point NC

Getting the lowest mortgage rate in High Point, North Carolina involves more than just shopping around. First, you need to know how to shop for the best rate. Shopping for Lowest Mortgage Rate in High Point, NC There are...

Budgeting Tips for Newlyweds

Work together to spend less, save more, and secure your financial future.