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 Health Savings Accounts (HSAs) for Individuals

An HSA is a tax-advantaged medical savings account available exclusively to individuals who are enrolled in a high-deductible health plan. Funds contributed to an HSA are not subject to federal income tax at the time of deposit. HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the individual and may be used to pay for qualified medical expenses at any time without federal liability or penalty. 

HSAs encourage saving for future health care expenses and give consumers more flexibility to determine their own health care choices. Learn more about HSAs below in the Health Savings Accounts Help Center.

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HSA Access

Health Savings Account Features

  • Includes a checking account.
  • No set-up fee. No annual fee.
  • No monthly maintenance fees*.
  • Interest earned monthly. Tiered rates.
  • Free HSA Mastercard® debit card.
  • Free online statements.
  • Easy access to your account.
  • Minimum opening balance $100.

*$5 monthly maintenance fee if your balance is less than $500

Open an HSA

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First National Bank's HSA Help Center can help you and your employees get started with a Health Savings Account.

Our friendly staff are glad to answer any questions you may have about HSAs or assist you set up an account. Employers wishing to establish accounts for their employees and make contributions to their accounts are also encouraged to contact us to get started.  

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FREQUENTLY ASKED QUESTIONS

    • What is an HSA?

    • A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses.

      • Tax-deductible. Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA.
      • Tax-free. Withdrawals to pay qualified medical expenses are never taxed.
      • Tax-deferred. Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.
      • HSA money 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.

    • What are the contribution limits?

    • HSA contribution limits

      Every year, the Internal Revenue Service (IRS) sets the maximum that can be contributed to an HSA. The amount you can contribute to an HSA each year is determined by whether you are enrolled in self-only or family coverage and if you are age 55 or older.

      2023 HSA contribution limits. The HSA contribution limits for 2023 are $3,850 for self-only coverage and $7,750 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.

      2024 HSA contribution limits. The HSA contribution limits for 2024 are $4,150 for self-only coverage and $8,300 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.

      2025 HSA contribution limits. The HSA contribution limits for 2025 are $4,300 for self-only coverage and $8,550 for family plans. The IRS will release the 2025 catch-up contribution for savers age 55 and older later this year. 

    • How does an HSA plan work?

    • An HSA works in conjunction with high deductible health insurance.

      Your HSA dollars can be used to help pay the health insurance deductible and any qualified medical expenses, including those not covered by the health insurance, like dental and vision care.

      Any funds you withdraw for non-qualified medical expenses will be taxed at your income tax rate, plus 10% tax penalty.

      Once you meet your calendar-year deductible, the health insurance pays remaining covered expenses in accordance with the terms and conditions of your particular plan. Some plans pay 100% of covered expenses after the calendar-year deductible is met.

    • Can my HSA be used for dependents not covered by the health insurance?

    • Generally, yes. Qualified medical expenses include unreimbursed medical expenses of the accountholder, his or her spouse, or dependents.

    • What about nonmedical withdrawals?

    • Nonmedical withdrawals from your health savings account are taxable income and subject to a  ax penalty.

      Exception.

      This tax penalty does not apply if the withdrawal is made after the date you:

      • Attain age 65;
      • Become totally and permanently disabled; or
      • Die.

    • Can my HSA be used to pay my health insurance premium?

    • No, this would be a nonmedical withdrawal, subject to taxes and penalty.

      Exceptions.

      No penalty or taxes will apply if the money is withdrawn to pay premiums for:

      • Qualified long-term care insurance; or
      • Health insurance while you are receiving federal or state unemployment compensation; or
      • Continuation of coverage plans, like COBRA, required under any federal law; or
      • Medicare premiums.

    • What are the HSA tax benefits?

    • There are three major tax advantages to your HSA.

      1. Cash contributions to an HSA are 100% deductible from your federal gross income (within legal limits).
      2. Interest on savings accumulates tax deferred.
      3. Withdrawals from an HSA for “qualified medical expenses” are free from federal income tax.

    • What is a qualfied medical expense?

    • A qualified medical expense is one for medical care as defined by Internal Revenue Code Section 213(d). The expenses must be primarily to treat or prevent a physical or mental condition or illness, including dental and vision. Most expenses for medical care will fall under IRC Section 213(d).

      However, some expenses do not qualify.
      A few examples are:

      • Surgery for purely cosmetic reasons
      • Health club dues
      • Illegal operations or treatment
      • Maternity clothes
      • Toothpaste, toiletries, and cosmetics

      HSA money cannot generally be used to pay your insurance premiums. See exceptions above under “Can my HSA be used to pay insurance premiums?”.

      *See IRS Publications 502 (“Medical and Dental Expenses”) and 969 (“Health Savings Accounts and Other Tax-Favored Health Plans”) for more information.

    • Can I have an HSA and IRA?

    • Yes, having an HSA in no way restricts your ability to have an IRA.

    • What happens to my HSA when I die?

    • Your HSA will be treated as your surviving spouse’s HSA, but only if your spouse is the named beneficiary. If there is no surviving spouse or your spouse is not the beneficiary, then the savings account will cease to be an HSA and will be included in the federal gross income of your estate or named beneficiary.

    • When can I start to use the funds in my HSA?

    • Once your account is open, a deposit has been made to your account and funds are available, you can start using your HSA. You are 100% vested as soon as the funds are deposited, and you have total control over the funds.

    • Is it true that individuals age 65 or older can take out funds from their HSA plan for any reason without a penalty?

    • If an individual is age 65 or older, regardless of whether the individual has been enrolled in Medicare, there is no penalty to withdraw funds from the HSA. As always, normal income taxes will apply if the distribution is not used for unreimbursed medical expenses (expenses not covered by the medical plan).

    • Can I have more than one HSA?

    • Yes. You may open and contribute to as many HSAs as you like. Please note that the annual IRS contribution limit will still apply to the total amount you contribute to all your HSAs, and opening more HSAs will not increase your limit. Also, if you have an HSA through your employer, any contributions your employer makes will count toward the limit. See IRS Publication 969 for more on annual HSA contribution limits.

    • What happens to my HSA if I change jobs or leave my company?

    • Your HSA and your balance are always yours, even if you change employers or move to another state. You can contribute to your HSA—even an HSA offered by your previous employer—as long as you continue to meet eligibility requirements. Even if you become ineligible to contribute to your HSA, you can spend your HSA money tax-free for qualified medical expenses any time, including through retirement.

    • What if I don't keep the same health insurance plan?

    • Your HSA is always yours, even if you change health insurance plans. However, if you switch to a health plan that is not HSA-eligible, you will no longer be eligible to make future contributions to your HSA.

    • What is an HSA-eligible health plan?

    • For 2023, the IRS defines HSA-eligible plans as high-deductible health plans (HDHPs) with a deductible of at least $1,500 for an individual and $3,000 for families. These health plans must also have an annual out-of-pocket maximum spending amount of no more than $7,500 for an individual and $15,000 for families. See IRS Publication 969 for more about HSA-eligible health plans.

      For 2024, the IRS defines HSA-eligible plans as high-deductible health plans (HDHPs) with a deductible of at least $1,600 for an individual and $3,200 for families. These health plans must also have an annual out-of-pocket maximum spending amount of no more than $8,050 for an individual and $16,100 for families. See IRS Publication 969 for more about HSA-eligible health plans.

    • How can I contribute to my HSA?

    • There are four ways you can contribute to your HSA.

      • Transfer money. Make a one-time or recurring transfer from a bank account.
      • Deposit a check.
      • Use money from another HSA: Transfer some or all of your balance from another HSA.
      • Move money from an IRA: Complete a one-time transfer – there’s no penalty and it’s tax-free.

    • I'm having problems with my HSA debit card. Who do I call?

    • To activate your HSA debit card, call 1-800-992-3808. 

      For all other issues or questions, please call First National Bank's Customer Service team at 515-232-5561 or 641-3342-6581. 

The information provided on this page is general in nature. It is not intended, nor should it be construed, as legal or tax advice. Because the administration of an HSA is a taxpayer responsibility, you are strongly encouraged to consult with your employer and tax advisor before opening an HSA.

You are also encouraged to review information available from the Internal Revenue Service (IRS) for taxpayers, which can be found on the IRS website at www.IRS.gov. You can find IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, and IRS Publication 502, Medical and Dental Expenses (including the Health Coverage Tax Credit), online, or you can call the IRS to request a copy of each at 800.829.3676.

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