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
  • eCheck/Bill Pay
  • eStatements
  • Year-end Reporting

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

HSA RATES

Apply now for your Health Savings Account.

Individual health savings Account Application

 

The Internal Revenue Service (IRS) has announced the annual contribution levels for 2020, based on your qualification. See table below for more information.
contributions & Qualifications 2020 2019
Single Contribution Limit4 $3,550 $3,500
Family Contribution Limit4 $7,100 $7,000
Catch-up (ages 55 +) $1,000  $1,000 
HDHP Deductible Amount
(self-only coverage)
$1,400  $1,350 
HDHP Deductible Amount
(family coverage)
$2,800  $2,700 
Annual Out-of-Pocket Expenses Cannot Exceed
(self-only coverage)
$6,900 $6,750
Annual Out-of-Pocket Expenses Cannot Exceed
(family coverage)
$13,800 $13,500

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 that you are making a prior-year contribution.

 

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

Paying medical expenses using my HSA5:

  • 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 taxes5:
  • Keep all qualifying receipts with your tax records

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 look at the Publication 969