Individuals & Families

What is a Health Savings Account?

A Health Savings Account (HSA) is a tax-advantaged personal savings account that helps those with HSA-qualified health plans 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.

Benefits for you

Save it. Use it. Never lose it.1

Triple tax advantage2

An HSA offers unique tax advantages that help you keep more of your hard-earned money by providing the potential for:

  • Tax-free contributions: Money you put into your HSA is not subject to Federal income tax—and is also exempt from most states income tax as well.*
  • Tax-free gains: Any interest the money in your HSA earns is 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

Any unused balance carries over from one year to the next.

Take advantage of the investment feature for long term health care savings

Once your account balance reaches $1,000 you are eligible to activate the investment feature of your account. You may choose from a select menu of low cost, competitive mutual funds which is a great way to supplement your longer term savings strategy.

Easy way to pay

Free HSA Visa® debit card with no transaction fees4. 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.

Member website

Online account access makes it easy to submit claims and monitor accounts.

Mobile app5

Submit claims, check your balances and monitor your account all from your smartphone.

Keep growing6

Make the most of your account over the long term by investing in a select menu of low cost, competitive mutual funds. We make investing easy for you. Once your account reaches $1,000 you select the amount you want in your cash account and we will automatically manage the transfers to and from your investment account. Choose from a range of mutual funds with no additional account or transaction fees.

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.

*Please consult your tax advisor regarding state specific rules.

1"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.

2About 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 tax free. You may be able to claim a tax deduction for contributions you, or someone other than your employer, make to your HSA. Bank of America recommends you contact qualified tax or legal counsel before establishing a HSA.

3The Internal Revenue Service publishes a list of qualified expenses in Publication 502, Medical and Dental Expenses available at www.irs.gov.

4This 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.

5Data connection required. Wireless carrier fees may apply. Mobile app not available on all devices.

6Mutual Fund investment services for the Bank of America HSA are provided by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker-dealer, Member SIPC and a wholly owned subsidiary of Bank of America Corp. (“BofA Corp.”). Investments in mutual funds are held in an omnibus account at MLPF&S in the name of Bank of America, N.A. (“BANA”), for the benefit of all HSA account owners. Investment advisory services for the HSA are provided to BANA by Devenir Investment Advisors, LLC, a registered investment advisor.Devenir is not an affiliate of BofA Corp.