Health Savings Accounts

Health Savings Accounts are a great way to take control of your healthcare expenses for your family or your employees. But you likely have some questions. This page provides answers to some common questions you may have, as well as preliminary documents that are required for opening a Health Savings Account.

If you are an employer interested in establishing HSAs for your employees, group presentations may be available. For more information, contact our HSA Administrator, Jeanne Evangelista, at 315.568.5855, ext 3225.

What is an HSA?

HSAs are tax-favored savings arrangements for individuals covered by high-deductible health plans (HDHPs). Individuals can use the money they save in an HSA to pay for qualified medical expenses incurred by themselves, their spouses or their dependents. HSAs are subject to IRS rules and guidelines.

SPECIAL NOTE: Seek advice from your health insurance provider or your employer’s HR dept. when determining your eligibility.

Eligibility

Eligibility for an HSA is determined by the customer on a monthly basis. You are eligible if you:

  • are covered under an HDHP on the first day of such month
  • generally not covered by any health plan that is not an HDHP
  • are not enrolled in Medicare
  • are not eligible to be claimed as a dependent on another person’s tax return

Contribution Limits

Contribution limits are determined by the IRS and are periodically adjusted for cost-of-living increases. Individual contribution amount may vary due to age, type of coverage and eligibility dates. The bank is responsible for ensuring that the HSA owner does not contribute more than is allowable:

  • SINGLE —$3,400 maximum for 2017
    (additional $1000 Catch-up if age 55 or older)
  • FAMILY — $6,750 maximum for 2017
    (additional $1000 Catch-up if age 55 or older)

Establishing your HSA

The HSA is an Individual Ownership account.
(Additional signors can be added.)

  • The PLAN ACCOUNT holds the HSA Savings & Checking accounts. It is used for reporting to IRS.
  • The HSA SAVINGS is the money account that accepts/distributes the reportable transactions.
  • The HSA CHECKING allows for the use of checks and/or Debit Cards.

Types of HSA accounts

We offer two types of HSA money accounts:

HSA SAVINGS:

  • $50 minimum to open/three Daily Balance tiers available
  • $20 set-up fee
  • $5 monthly maintenance fee for balances <$1,000
  • No annual fee
  • Checks available — $22.00 fee per check order
  • Free HSA Debit Card issue
    • Possible transaction fees from ATMs not owned by this bank
    • Possible transaction fees from Point-of-Sale (POS) terminals
    • $5 debit card reorder fee
  • Monthly statement options:
    • Mailed
    • Accessed online through free Internet Banking
  • Free Online Bill Pay available

e-HSA SAVINGS (Must have Internet access)

  • $50 minimum to open / three Daily Balance tiers available
  • $20 set-up fee
  • No monthly maintenance fee
  • No annual fee
  • No checks
  • Free HSA Debit Card issue
    • Possible transaction fees from ATMs not owned by this bank
    • Possible transaction fees from POS terminals
    • $5 debit card reorder fee
  • Monthly statements accessible only online through free Internet Banking
  • Free Online Bill Pay available