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What is a Health Savings Account (HSA)?

Learn how health savings accounts work and why they might be right for your business

A health savings account is a tax-advantaged account used in conjunction with an HSA-compatible health plan to pay for eligible medical expenses. In other words, it’s a separate account of tax-free money employees can use to pay medical bills. Here are some of the HSA highlights:
Two Easy Ways to Open an HSA
  • Online: Act Now
  • By Phone:1-888-784-4584
Service Health Savings Account Rules & Benefits
Eligibility You may be qualified if:

  • You are covered by a single or family High-Deductible Health Plan (HDHP).
  • You are not covered by any other non-HDHP health plan, such as a spouse’s plan that provides any benefits covered by your HDHP plan.
  • You are not enrolled in Medicare.
  • You cannot be claimed as a dependent on another person’s tax return, excluding your spouse.
  • You do not receive health benefits under TRICARE.
  • You have not received Veterans Administration (VA) benefits within the past three months.
  • You are not covered by a general purpose health care Flexible Spending Account (FSA) or Health Reimbursement Account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.

Other restrictions and exceptions may also apply. We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances.

Benefits for your employees
  • Triple Tax Advantage
    • Tax-free interest accumulation
    • Tax-free withdrawals for qualified medical expenses
    • Pre-tax contributions through payroll deduction
  • Individually owned custodian accounts
  • Money rolls over year after year
  • Tiered interest rate paid on balances
  • Portable
  • Save for future medical expenses
  • Access to HSA through debit cards, online bill pay and checks
Benefits for you
  • Complements your HR benefits, providing employees with tax-free savings to cover healthcare expenses
  • Handles tax reporting of 1099SA and 5498SA for participants, easing your administrative burden
  • Offers employees convenient access to HSA funds through debit cards, online bill pay and up-to-date account balances through online banking
  • Provides HR with convenient employee enrollment options: online, electronic batch, direct transmissions
  • Contributions are conveniently made through direct deposit, ACH or mail in check deposit
Account access and enroll

Learn more about health savings accounts

For more information about how this can support your business needs, please contact your local Cash Management representative or contact us at 1-877-550-5933 or 1-888-784-4584.

Email: clientservices@rbscitizens.com

Need more information about health savings account rules and options?

Review additional information about health savings accounts:

 

 

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