Using Your HSA Account

A Health Savings Account (HSA) is an account set up to pay for qualified medical, pharmacy, dental and vision expenses and operates like a checking account.

Important details to understand about HSA accounts:

  • You must be covered by a high-deductible health plan to open an HSA.
  • Anyone can deposit money in your HSA, up to an annual limit set each year by the IRS.
  • The money in your HSA account is yours and will roll over year to year.

Three ways to access the funds in your HSA and pay for qualified medical expenses:

  • Use your HSA Debit Card to make a payment at the doctor’s office or pharmacy
  • Use online bill pay
  • Write a check

Additional account details and conditions:

  • The Park Bank HSA account is interest bearing. See current rates.
  • Each year, the IRS determines the maximum amount that can be contributed to an HSA during the calendar year. Details about limits and qualified medical expenses are available at https://www.irs.gov/

Common Questions:

  • What happens if I over-contribute?
    If your HSA contributions exceed the IRS contribution limits, you must report the excess amount as gross income on your income tax. You will also have to pay additional excise tax on that amount.

  • Can I open a joint HSA with my spouse?
    No. Each spouse must open a separate HSA. You can, however, give your spouse access to your HSA by designating them as an authorized signer on the account (Power of Attorney) and providing them with a Debit Card for access.

  • Are there catch-up contributions?
    Eligible individuals over the age of 55 are allowed to make additional "catch-up" contributions to their HSAs. The catch-up amount is $1,000, and if you turn 55 during the year, you can contribute the full $1,000.

  • Can I use my HSA for non-medical expenses after I turn 65?
    Yes. Money spent on ineligible costs before age 65 is subject to income tax plus a 20 percent penalty. After you turn 65, you won’t pay the penalty, but the distribution will still be subject to income tax.

  • Can I rollover or transfer money from a previous medical savings account to my current HSA?
    Yes. Generally, you are able to transfer or rollover funds from an MSA or HSA with another custodian to your current HSA. You are limited to one rollover per twelve-month period, and the rollover must be completed within 60 days.