The HSA Authority

Access ID: 

Help  |  Demo

Access ID: 

Help | Demo

Employees & Individuals



What is a Health Savings Account? Answer...

An HSA is an individual bank account that allows you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-advantaged basis



Why should I invest in a Health Savings Account? Answer...

If you or your employer are tired of the high costs of health insurance and would prefer to keep that money for yourself to spend on health expenses or save for the future, you should look into a Health Savings Account.



Who is eligible for a Health Savings Account? Answer...

To be eligible for a Health Savings Account, an individual must be covered by a High Deductible Health Plan (HDHP), must not be covered by other non-HDHP health insurance (does not apply to specific injury insurance and accident, disability, dental care, vision care, or long-term care), must not be enrolled in Medicare, and can’t be claimed as a dependent on someone else’s tax return.



What is a High Deductible Health Plan (HDHP)? Answer...

A High Deductible Health Plan is a health insurance plan that meets IRS guidelines for minimum deductibles and maximum out of pocket expenses. An HSA qualified HDHP can have first dollar coverage (no deductible) for preventative care and higher out-of-pocket (co-pays and coinsurance) for non-network services.

See HSA Federal Guidelines for detailed information. IRS limits for deductibles and out of pocket maximums typically change each year.



Who can contribute to a Health Savings Account? Answer...

Contributions to HSAs can be made by either the employer or the individual, or both. If after-tax contributions are made by the individual, it is an “above-the-line” deduction. If contributions are made by the employer, it is not taxable to the employee (excluded from income). Employee contributions can also be made through payroll on a pre-tax basis.



How much can I contribute to a Health Savings Account? Answer...

The maximum contribution is based on IRS limits and is indexed annually. See HSA Federal Guidelines for current year limits. Individuals age 55 and over may also contribute a catch-up contribution, which is also indexed annually.



Do Health Savings Account funds roll over year after year and get invested? Answer...

Yes, any unused funds in a Health Savings Account roll over each year. Funds can earn interest, tax free, in a variety of investment options, including brokerage. CD’s are also available.



Who has control over the money in a Health Savings Account? Answer...

With Tower Bank as trustee, account holders have complete control over their funds. Other trustees may impose limits on accessibility.



Is there an IRS approved list of medical expenses from which I can use my HSA dollars? Answer...

A list of allowable expenses can be found on the Eligible Expenses page of this website or if you would like a more thorough list provided by the Internal Revenue Service click here.

In general, you can use your tax-advantaged HSA dollars on medical, dental (including braces for your children) and vision expenses, chiropractic visits, and even acupuncture, but not on your insurance premium, unless you are unemployed and are collecting Federal unemployment benefits.



How do I submit a change of address or beneficiary? Answer...

Fill out the Name or Address Change Form. Completed forms can be faxed or mailed to Tower Bank-HSA Processing. The contact information is listed at the top of the form.



Can I use my Health Savings Account for non-medical expenses? Answer...

Yes, you can spend money out of your Health Savings Account for non-medical expenses; however, you will pay income tax and a 20 percent penalty for a non-medical withdrawal prior to age 65.

HSA Optical





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