Plan for future healthcare needs with PenAir
Health Savings Accounts (HSAs) are a great, tax-free way to save for qualified medical expenses, whether they’re expected or not.
Set aside money for medical costs
No fees or minimum balance required
Consolidate other HSA accounts into one
Manage your HSA account 24/7 with Retirement Central
Convenient payments for health-related expenses
How does an HSA work?
HSAs are individually-owned accounts to which you can make tax-deductible contributions, accumulate tax-deferred earnings, and take tax-free distributions whenever you need to pay for qualified medical expenses.
HSAs are used by those who are enrolled in a high deductible health plan (HDHP). You can use the money in your HSA to pay for qualified medical expenses until your insurance deductible has been met and insurance starts paying for your medical expenses.
HSA assets can also be used to pay for qualified medical expenses that are not paid by insurance, even after the deductible has been met. The qualified deductible changes each year.
Any adult may contribute to HSA Checking if they:
- Have coverage under an HSA-qualified High-Deductible Health Plan (HDHP)
- Have no other first-dollar medical coverage (meaning any other types of insurance such as specific injury insurance and accident, disability, dental care, vision care and long-term care insurance are permitted.)
- Are not enrolled in Medicare.
- Cannot be claimed as a dependent on someone else’s tax return.
Yes. You can withdraw funds from your HSA anytime. But keep in mind that if you use HSA funds for any reason other than to pay for a qualified medical expense, those funds will be taxed as ordinary income, and the IRS will impose a 20% penalty.
If requested by you, we will issue you an HSA Mastercard® for you to be able to make your purchases with! Just make sure they are for qualifying items.
No, any money placed in a Health Savings Account is yours to keep. Unlike a Flexible Spending Account (FSA), unused money in your HSA isn’t forfeited at the end of the year. It continues to grow, tax deferred.