Health Savings Account
An HSA is a pre-tax benefits plan that can be used to pay for eligible medical, dental and vision expenses, including copays, prescriptions, and a variety of products. To be eligible for an HSA, you must be enrolled in a High-Deductible Health Plan (HDHP).
Pay
Pay for eligible health expenses.
Save
Save for the future.
Invest
Two investment options to build wealth.What is a Health Savings Account?
Think of a Health Savings Account (HSA) as a 401(k) for your healthcare needs. The Equity Bank HSA experts are here to help you find what works best for your family or business.
HSA Benefits
It’s Yours
Think of your HSA as a personal savings account. Any unspent money in your HSA remains yours, allowing you to grow your balance over time. When you reach age 65, you can withdraw money (without penalty) and use it for anything, including non-healthcare expenses.
Flexibility
Save for a rainy day. Invest for your future retirement. Or spend your funds on qualified expenses, penalty free.
Easy to Use
Swipe your benefits debit card at the point of purchase. There is no requirement to verify any of your purchases. We recommend keeping any receipts in case of an IRS audit or to withdraw funds tax-free upon turning age 65.
Smart Savings
The HSA’s unique, triple-tax savings means the money you contribute, earnings from investments and withdrawals for eligible expenses are all tax-free, making it a powerful savings and retirement tool.
The Equity Bank Difference
What Does It Cover? There are thousands of eligible items. The list includes but is not limited to:
- Copays, coinsurance, insurance premiums
- Doctor visits and surgeries
- Over-the-counter medications (first-aid, allergy, asthma, cold/flu, heartburn, etc.)
- Prescription drugs
- Birthing and lamaze classes
- Dental and orthodontia
- Vision expenses, such as frames, contacts, prescription sunglasses, etc.
Frequently Asked Questions
As the only triple tax advantage account, an HSA allows you to choose how much of your paycheck you’d like to set aside, before taxes are taken out, for healthcare expenses or use as a retirement savings tool. This plan offers more tax savings than a traditional and Roth 401(k) and IRA, making it a powerful option for diversifying your retirement portfolio. With this account, you can make pre-tax contributions through your company’s payroll, or post tax contributions through our easy-to-use Online Banking App. Please see eligibility requirements, listed below.
You must be enrolled in a High-Deductible Health Plan (HDHP) in order to enroll in the HSA. You’re not eligible for an HSA if:
- You’re claimed as a dependent on someone else’s taxes.
- You’re covered by another plan that conflicts with the HDHP, such as Medicare, a Medical Flexible Spending Account (FSA) or select Health Reimbursement Arrangements.
- You or your spouse are contributing to a Medical FSA.
You can email healthcare@equitybank.com to get started or stop by any of our locations to learn more.
*Please consult your tax advisor regarding state specific rules.
About triple tax savings: You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax. Any interest or earnings on the assets in the account are federal income tax free. You may be able to claim a tax deduction for contributions you, or someone other than your employer, make to your HSA directly (not through payroll deductions). In addition, HSA contributions may reduce your state income taxes in certain states. Certain limits may apply to employees who are considered highly compensated key employees. Equity Bank recommends you contact qualified tax or legal counsel before establishing an HSA.
The Internal Revenue Service publishes a list of qualified expenses in Publication 502, Medical and Dental Expenses available at www.irs.gov.
The investment portion of the HSA account is not FDIC insured, not bank guaranteed and may lose value.