A Health Savings Account (HSA) is a potential tax-advantaged personal savings account that helps those with HDHP (High Deductible Health Plan) save money on many out-of-pocket medical expenses like doctor visits, vision and dental care, and prescriptions. An HSA gives you more control over your health care spending. You can contribute funds into an HSA on a pre-tax basis to save for current and future medical expenses, putting you in charge of how you spend your health care dollars.
Individuals
What is a Health Savings Account?
Benefits for you
Triple tax advantage1
An HSA offers potential tax advantages that help you keep more of your hard-earned money by providing the potential for:
- Pre-tax contributions2 : Funds contributed via payroll deduction are not subject to Federal income tax and is also exempt from most states income tax as well.
- Tax-free interest and earnings: Any interest or earnings from your HSA are federal income tax-free so you keep 100% of any money your HSA savings or investments earn, boosting the amount of money you have to cover your out-of-pocket medical costs.
- Tax-free withdrawals: You won't pay taxes on money you withdraw from your HSA for qualified medical expenses.
Allows you to take control of your health care costs
You decide how much money to save in your account (up to the IRS contribution limit) and which qualified medical expenses3 to pay with your HSA.
HSA for Life®
Your HSA belongs to you, so you can use the money in your account to pay for qualified health care expenses throughout your life—including retirement. There is no time limit on when to spend your HSA funds. Even if you change health plans, switch jobs or retire, your HSA goes with you. It’s yours…for life, and the funds never expire. Your health care is directly tied to living financially well – especially as we live longer.
No "use it or lose it" rules
Take charge of your health care savings by enrolling in investments.
You can select from a range of mutual fund options to give your account potential to grow tax-free over the long term to help be prepared for future health care expenses.
Easy way to pay
Free HSA Visa® debit card with no transaction fees5. Plus, the added security of chip technology along with Visa’s zero liability policy means you won’t be held responsible for fraudulent purchases made with their card or account information. Use your HSA to pay for doctor visits, trips to the pharmacy or even for qualified health care purchases when shopping online.
Investment feature
Make the most of your account over the long term by investing in mutual funds. You can set up your account at any time and once your account reaches the investment threshold you establish, funds will automatically transfer between cash and investments.
Member website
Online account access makes it easy to submit claims and monitor accounts.
Help when you need it
Our dedicated Customer Care associates are available 24/7 to support you with any questions along the way. Online chat is also available on the member website.
Mobile app6
Submit claims, check your balances and monitor your account all from your smartphone.
*Please consult your tax advisor regarding state specific rules.
1 About triple tax advantage: You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax. Any interest or earnings on the assets in the account are federal income tax free. You may be able to claim a tax deduction for contributions you, or someone other than your employer, make to your HSA directly (not through payroll deductions). In addition, HSA contributions may reduce your state income taxes in certain states. Certain limits may apply to employees who are considered highly compensated key employees. Bank of America recommends you contact qualified tax or legal counsel before establishing a HSA.
2 Pre-tax payroll contributions to your HSA may be exempt from federal and most state taxes or you may be able to claim a tax deduction for after-tax contributions you, or someone other than your employer, make to your HSA, as long as you continue to be an eligible individual. Eligibility is defined by IRS Code 223 and is described in your Bank of America Health Savings Account Custodial Agreement and Disclosure Statement, which includes maintaining coverage under a qualifying high deductible health plan.
3 The Internal Revenue Service publishes a list of qualified expenses in Publication 502, Medical and Dental Expenses available at www.irs.gov
4 Never Lose it" refers to account portability and annual rollover of accumulated assets, it does not imply you cannot lose money. The investment portion of the HSA account is not FDIC insured, not bank guaranteed and may lose value.
5 This HSA debit card program is issued by Bank of America, N.A. Visa is a registered trademark of Visa International Service Association, and is used by the issuer pursuant to license from Visa U.S.A. Inc.
6 Data connection required. Wireless carrier fees may apply. Mobile app not available on all devices.
Health Savings Accounts (HSAs) for individuals
An HSA from Bank of America helps put you in control of your health care costs.
If your employer offers an HSA from Bank of America, please follow the enrollment instructions they provided.