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Health Savings Accounts

High deductible insurance policies have become more popular in recent years, mostly because of the low monthly premium costs. The downside of that plan is the high deductible that families must pay when they need their insurance the most.

An easy answer to preparing for the unthinkable is to begin supplementing your current health insurance plan with a Health Savings Account (HSA). The money you put away in your HSA can be used to pay future medical expenses and health care supplies - such as contacts or bandages. 

To qualify for an HSA you must have a High Deductible Health Plan (HDHP) with no other first dollar coverage (such as other insurance or Medicare) and you cannot be claimed as a dependent on someone else's tax return. AbbyBank makes saving for future medical expenses with high deductible insurance plans easy. 

A Health Savings Account2 from AbbyBank includes:

  • No Monthly Service Fee
  • No Account Opening Fee
  • No Minimum to Open
  • Earn interest on balances of $50 or more3
  • Tiered Interest
  • Free Debit Card
  • Unlimited Check Writing
  • eBanking
  • Mobile Banking with Deposit
  • Bill Pay
  • eStatements
  • Year-end Reporting

Check out our Health Saving rates, including our newest tier for balances of $25,000 or more!


Apply now for your Health Savings Account.

Individual Health Savings Account Application

The Internal Revenue Service (IRS) has announced the annual contribution levels for 2023, based on your qualification. See table below for more information.
contributions & Qualifications 2024 2023
Single Contribution Limit4 $4,150 $3,850
Family Contribution Limit4 $8,300 $7,750
Catch-up (ages 55 +) $1,000  $1,000 
HDHP Deductible Amount
(self-only coverage)
$1,600  $1,500 
HDHP Deductible Amount
(family coverage)
$3,200  $3,000 
Annual Out-of-Pocket Expenses Cannot Exceed
(self-only coverage)
$8,050 $7,500
Annual Out-of-Pocket Expenses Cannot Exceed
(family coverage)
$16,100 $15,000

Contribution Limits and Deadlines

HSA contributions4 for each specific tax year may be made through the IRS tax filing deadline for that year, normally April 15th. See the chart above for specific tax year contribution limits. When making a contribution between January 1st and April 15th for the prior tax year, you will need to notify AbbyBank to designate a prior-year contribution.

HSA Contributions Calculator

HSA Savings Calculator

HSA Goals Calculator

1Accounts are subject to additional rules that may prohibit reimbursement of an otherwise qualifying medical expense
2All accounts are subject to credit approval 
3Interest compounded daily and credited to your account monthly
4You must follow the annual contribution limits or penalties may apply
5For more information on HSA’s visit www.irs.gov and review Publication 969

A Health Savings Account (HSA) is a type of savings account that can help pay for future IRS qualified medical expenses for yourself and your eligible dependents. An HSA account lets you set aside money on a pre-tax basis, offering a unique tax advantaged account. You must have a high-deductible health plan to qualify.

Any contributions you make to your HSA are automatically rolled over for future use - even in retirement. Some people choose to add the maximum contribution annually for current or future qualified health care expenses. AbbyBank has an HSA contribution calculator to help you determine the maximum amount you can deposit into your HSA. Even through employment changes, your funds stay with you. Healthcare expenses can grow quickly and unexpectedly, if the funds in your health savings account aren’t enough, you can take control with a personal loan through AbbyBank.

You can open an HSA to take control of your out-of-pocket medical expenses. Below is a list of what you can use your health savings account for.

  • Family medical expenses
  • Dental expenses
  • Vision care expenses
  • Pay for prescription medications or over-the-counter medications when prescribed by a doctor
  • Deductibles and co-pays
  • After retirement - save now for future out-of-pocket costs, premiums, and long-term care (Age 65 or older)
  • For a more detailed listing of qualified IRS medical expenses, visit IRS Publication 502

In order to qualify for a Health Savings Account (HSA), you must be in a High-Deductible Health Plan (HDHP).  If your insurance is single or family coverage will determine how much you eligible to contribute into the account annually.  Deposits can be made by either you and/or your employer, up to your annual maximum contribution limit. The funds can be carried over from year to year for future qualified expenses.  Your HSA will follow you as you change employment, and you needn’t be employed to contribute as long as you have a HDHP. 

A Flexible Spending account (FSA) is only offered as part of a benefits package from an employer.  It has a lower annual contribution amount.  Most have a "use it or lose it" rule, meaning you lose any amount you haven’t spent at the end of the year.  However, some employers may allow a maximum rollover of $500.  Both may offer some unique tax advantages.

There are many options to choose from when paying for your current or future healthcare expenses.

  • Use your HSA debit card(s)
  • Write checks
  • eCheck through Internet Banking
  • Use your HSA as a savings and reimburse yourself annually, quarterly, or monthly

Contributing to your health savings account is easy. You can use mobile banking, eBanking, or in-person banking to contribute funds into your account. Your employer can contribute to your HSA through direct deposit during payroll. You can set up automatic contributions through a checking account as well.

Keep all qualifying receipts with your tax records. The account holder will be responsible for noting any contributions and distributions. Having the receipts readily accessible helps the IRS determine whether you used your HSA for qualified medical expenses.