Health Savings Account (HSA)
An HSA is a savings account that allows you to put money aside on a pre-tax basis for qualified medical expenses. Funds can be used for a wide range of expenses, including doctor visits, prescriptions, vision and dental expenses and more.
Account Benefits:
- Covers most medical expenses for whomever is covered under the plan.
- Contributions are tax deductible.
- Tax-free withdrawals to pay for qualified medical expenses.
- No “Use it or Lose it” Rules – Any unused money in your account is carried over to the next year.
- Contribute via payroll – Set aside a specific amount from your paycheck
- You own the account. Even if you leave your employer, relocate, or become unemployed, the money is yours.
- After age 65, you can use the funds for non-medical expenses without penalty.
Belco HSA Account Features:
- No monthly fee
- Access your funds with your HSA debit card, checks, or through online and mobile banking.
- Easy online account opening
- Free online Bill Payer
Frequently Asked Questions:
Who is eligible to open a Health Savings Account (HSA)?
To be an eligible individual and qualify for an HSA, you must meet the following requirements:
- You are covered under a high deductible health plan (HDHP)
- You have no other health coverage except what is permitted under other health coverage
- You aren’t enrolled in Medicare
- You can’t be claimed as a dependent on someone else’s 2020 tax return.
How much can I contribute to my HSA?
For 2022, the limits are:
- Single Coverage Annual Limit: $3,650.00
- Family Coverage Annual Limit: $7,300.00
- If 55 or older, Catch Up Contribution: $1,000.00
What can I spend this money on?
See IRS Publication for qualified medical and dental expenses.
How do I report my HSA account activity?
Do I need to keep my receipts?
Yes, it is recommended that you keep your receipts for auditing purposes. You should keep records of your medical and dental expenses to support your deduction. Do not send these records with your return.
What happens to my HSA if I am no longer in a high deductible health care plan?
You will not lose the money in your HSA account and you can continue to use the money for qualified medical expenses. However, you will not be able to make contributions to your HSA.
Will I receive a debit card and/ or checks when I open a Health Savings Account?
Yes, you will receive an HSA debit card (upon request), checks (upon request) when the account is opened. You can also choose to enroll in our online Bill Payer service.
Can I transfer my HSA at another financial institution to Belco?
Yes. For instructions on transferring your HSA to Belco, call 800-642-4482.