Health Savings Account frequently asked questions

A Health Savings Account (HSA) is a great way to save money for qualified medical expenses like doctor visits, dental and vision care, and prescriptions. It offers potential tax advantages that allow you to keep more of your hard-earned money, plus you can use it now or save it to cover health care costs in the future.

You are eligible for an HSA on your own or through your employer if you participate in a qualified high-deductible health plan (HDHP).
You're not eligible for an HSA if you are:

• Covered by another health insurance plan, such as a spouse's plan, that is not a qualified HDHP
• Claimed as a dependent on another person's tax return
• Enrolled in Medicare benefits (if you are enrolled in Medicare and already have an HSA, you can continue to use the money in your account, but you cannot make new contributions to the account or open a new HSA)

Once you set up your account, you can use it to help pay for qualified medical expenses for you, your spouse and any dependent children included on your income tax returns.

Contributing to an HSA can potentially save you money on your taxes. 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 make to your HSA.

In general, you are not eligible to make contributions to an HSA in this situation. Please speak with a tax advisor for more information.

The federal government establishes contribution limits each year. See the current contribution limits. If you are 55 or older you are eligible for a catch-up contribution.

Consider putting in an amount that helps you cover your qualified medical expenses in the short term, but also allows you to set aside money to invest for the long term. Check out the "How much should I put in my Health Savings Account (HSA)?" article to learn more.

Here are four ways you can contribute to an HSA:

• 1. Payroll deduction
• 2. Electronic transfer (from your checking or savings account using the member website)
• 3. Mail a check. Just download and complete the HSA Contributions Form located on the member website under the Tools and Support tab.
• 4. Once-per-lifetime transfer or rollover

Learn more about HSA Contributions

Yes, if your annual contributions (combined with those of your employer) do not exceed the IRS-defined limits.

You can use your HSA to pay for a variety of qualified medical healthcare expenses. As the accounts are potentially tax-advantaged, the IRS defines the types of expenses that you can pay for with funds contributed to your HSA. Generally, qualified expenses include doctor visits, medications, medical equipment, and dental and vision care for you, your spouse and any eligible tax dependents. For additional information, view IRS Publication 502.

Here are three ways to pay for qualified medical expenses using your HSA:

• 1. Use your Bank of America Health and Benefit Account Visa® debit card¹
• 2. Pay the provider directly from the member website or MyHealth app²
• 3. Pay out-of-pocket and reimburse yourself

Learn more about the Three Ways to Pay.

You can access your HSA any time on the MyHealth app or the member website.
Click here to learn more about the MyHealth app. ²

You cannot use an HSA to pay insurance premiums for medical, dental, or vision care, they are not considered qualified medical expenses.
If you're enrolled in Medicare and are age 65 or older, you can use your HSA funds to pay for Medicare premiums and qualified out-of-pocket expenses. You are also allowed to use your hsa funds to pay premiums for long-term care insurance, COBRA continuation coverage costs, and any health plan coverage you pay for while receiving unemployment compensation.

There's no deadline for using the money like there is with some other health accounts such as a Flexible Spending Account (FSA). HSA balance rolls over year after year and can keep growing.

The money stays with you. It's your money for the rest of your life. You can continue to use the account to pay for qualified health care expenses. However, the law states that you can only make new contributions to the account if you are enrolled in an HSA-eligible health plan.

You can pay out-of-pocket for the product or service and request a reimbursement from your HSA once you have accumulated enough funds to cover your expense.

The HSA investment feature offers federal tax-free earning potential that could add up over time. That's money you can put toward paying for your health care expenses in retirement.
There is a range of mutual fund options available for investing. Check out the fund line up.
Click here to learn more about the benefits of HSA investing.

Yes, funds in your HSA earn interest, and interest earnings are tax-free.

Yes, you have until April 15 (tax deadline) of the current year, to open and fund an HSA for the previous year.

Yes, you may transfer or rollover your other HSAs to consolidate them into one.
Note: rollover and transfer contributions do not count towards the maximum annual contribution amount.

In general, you are not eligible to make contributions to an HSA in this situation. Please speak with a tax advisor for more information.

The standard monthly account fee is $2.50. If your account is offered by your Employer this fee may not apply to you. Learn more about the Health Savings Account Schedule of Fees.

Tax information is always available on the member website. Go to the Statements & Notifications tab and choose HSA Tax Documents.
Bank of America mails two tax forms to account holders who had account activity in the previous tax year (HSA tax documents):

• Form 1099-SA is sent by February. It is sent to those who withdrew money from their HSA during the previous tax year.
• Form 5498-SA is sent by the end of May. It is sent to those who put money into their HSA during the previous tax year.