Health Savings Accounts

Take control of your healthcare dollars with a Health Savings Account (HSA).

Use pre-tax dollars to pay for current and future medical expenses. An HSA combines a high-deductible insurance plan with a tax-exempt savings account.

 

 

Open My HSA Account

Call us today at (866) 236-8744 or stop by any Central Bank location to learn more.

What is an HSA?

A Central Bank HSA offers a triple tax advantage – deposits are tax deductible, growth is tax-deferred and spending is tax-free if used for qualified health care expenses. You must be enrolled in a qualified high deductible health plan to enroll. Once enrolled, you own your HSA even if you change jobs or retire. Plus, the balances roll over from year to year.

Why choose an HSA?

Flexibility:

  • You choose when to make your contributions and how to invest them.
  • You can use the funds at any time for qualified medical expenses.

Tax Freedom:

  • Your contributions are 100 percent tax-deductible.
  • Your employer’s contributions to your HSA are excluded from your gross income.
  • Your interest on the account is tax-deferred.

 

How does an HSA work?

HSAs work just like a normal checking account. You can use a debit card or online bill pay for medical expenses. You put money into the account just like depositing money into a checking account. You can also view your transactions online and in a monthly statement.

Health Savings Account FAQs

No. HSAs are individually owned. However, you may authorize your spouse to allow them to get information on your HSA and add them as a dependent so a debit card can be ordered for them.

Anyone can contribute to your HSA.

There are several ways you can contribute to your HSA - employer payroll deduction, add your bank account online in HSA Central and transfers funds,  transfer HSA funds from a separate HSA account, or check deposit at all Central Bank locations. 

IRS Limits

  2024 2025
Maximum Contribution Limit Self-only: $4,150

Family: $8,300		 Self-only: $4,300

Family: $8,550
     
Catch-up Contribution (55+) $1,000 $1,000

You must report the excess amount as gross income on your income tax and an excise tax will apply. You can remove excess contributions by contacting us, but fees may apply.

A High Deductible Health Plan, also known as an HDHP is a healthcare option that often offers a lower monthly premium in exchange for a higher deductible. This type of plan is often paired with a health savings account option by employers.

Yes, you can have some additional coverage, called “permitted insurance,” including:

  • Specific disease or illness insurance
  • Accident, disability, dental care, vision care and long-term care insurance
  • Discount card such as a pharmacy card
  • Insurance that provides a fixed payment per day (or other period) for hospitalization

To qualify for an HSA, you must meet the following requirements:

  • You must be covered by a qualified high deductible health plan (HDHP).
  • You must have no other health coverage, including a spouse's plan that provides benefits covered by your HDHP. You can have accident, disability, dental, vision or long-term care coverage or insurance that provides benefits for a specific disease or illness, a fixed amount for hospital stays or liability coverage, such as workers' compensation.
  • You are not enrolled in Medicare
  • You do not receive health benefits under TRICARE
  • You have not received Veterans Administration (VA) benefits within the past three months
  • You cannot be claimed as a dependent on some else's tax return
  • You are not covered by a general purpose health care flexible spending account (FSA) or health reimbursement account (HRA). Limited-purpose FSAs and HRAs are permitted.

Your contributions are 100 percent tax deductible, contributions made by an employer are excluded from gross income and funds grow on a tax-deferred basis.

Yes. Annual contributions should be made by your tax filing deadline. Generally, April 15 of the following year.

For a complete list, visit irs.gov or view our list.

Yes. As long as the qualified health care expense occurred after you opened the HSA, you can pay or reimburse yourself with HSA funds. Keep copies of your receipts to verify your funds were used for qualified health care expenses and not paid for by another source or taken as an itemized deduction for a prior tax year.

Those funds are considered part of your gross income and subject to income tax plus a 20 percent IRS penalty. Funds used after an account holder's death or disability or after age 65 are not subject to the 20 percent penalty.

Unused balances roll over from year to year. You won't lose your money if you don't spend it within the year.