Health Savings Accounts

 

A Health Savings Account (HSA) allows you to save for future medical expenses with certain advantages, including favorable tax advantages. To qualify1 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 Account from AbbyBank includes:

  • No Monthly Service Fee
  • No Account Opening Fee
  • No Minimum to Open
  • Earn interest on balances of $50 or more2
  • Tiered Interest
  • Free Debit Card
  • Unlimited Check Writing
  • eBanking
  • Mobile Banking with Deposit
  • eCheck/Bill Pay
  • eStatements
  • Year-end Reporting

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Individual Account Application

 

The Internal Revenue Service (IRS) has announced the annual contribution levels for 2019, based on your qualification. See table below for more information.
contributions & Qualifications 2019 2018
Single Contribution Limit3 $3,500 $3,450
Family Contribution Limit3 $7,000 $6,900
Catch-up (ages 55 +) $1,000  $1,000 
HDHP Deductible Amount
(self-only coverage)
$1,350  $1,350 
HDHP Deductible Amount
(family coverage)
$2,700  $2,700 
Annual Out-of-Pocket Expenses Cannot Exceed
(self-only coverage)
$6,750 $6,650
Annual Out-of-Pocket Expenses Cannot Exceed
(family coverage)
$13,000 $13,300

Contribution Limits and Deadlines

 

HSA contributions3 for tax year 2018, up to your annual limit, may be made through April 15, 2019. Contribution limits for 2018 are $3,450 for single coverage or $6,900 for family coverage. Individuals age 55 and older may also make a catch-up contribution of up to $1,000 for 2018. In order to make a carry-back contribution for 2018, you must notify AbbyBank of the appropriate tax year.

 

HSA Contributions Calculator  

HSA Savings Calculator   

HSA Goals Calculator               

 

What can I use my HSA 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 medical expenses, visit IRS Publication 502

How to pay my medical expenses using my HSA 4:

  • 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
How to record spending on my taxes4:
  • Keep all qualifying receipts with your tax records

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