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FAQs About HSAs

Have questions about how an HSA would work for you and your family? Our goal is for you to fully understand the ins-and-outs of an HSA so you can make an informed decision on whether or not this account is right for you. Click on any question below for details and answers to your questions about HSAs.

Health Savings Accounts, or HSAs, were signed into law on December 8, 2003, for use in conjunction with High Deductible Health Plans (HDHP). Pre-tax funds are contributed and deposited into these accounts for the purpose of paying for current and future medical expenses. As needed, you may withdraw the funds, tax-free, to pay for medical care for yourself, your spouse or your dependents.



HSAs are controlled by the individual owner of the account, not the employer or the insurer.

Anyone enrolled in a qualified high deductible health plan (HDHP) can open an HSA. (Please note, if you are enrolled in Medicare, you cannot open an HSA. If you have an HSA and later enroll in Medicare, you can use the funds, but can no longer make contributions.) The best way to determine if your health plan qualifies is to ask your insurance provider.

Contributions may be made to an HSA owned by you either by your employer, by you, by other individuals, or any combination of these.

  • Contributions made by your employer are not taxable to you.
  • Contributions made by you qualify for “above the line” tax deduction.
  • Contributions made by a third party may also be deducted by the account owner.
  • You can make contributions by salary deduction—these are pre-tax.
  • You can make contributions thru non-salary contributions or random contributions. These are not pre-tax and will be reported as after-tax contributions, then they may be deducted on your tax return.
  • Employers can make some, all or none of your contributions. Employer contributions are never taxable to you and they must be comparable for all employees participating in the HSA plan.
  • Self-employed individuals, members of partnerships and S-Corporation shareholders are generally not considered employees and cannot receive an employer contribution, but they can make deductible contributions to their own HSA.

For 2015, the amount is $3,350 for individuals and $6,650 for family coverage. If you are over 55, you can make additional catch-up contributions. Every year, these dollar amounts change as the IRS adjusts the limits for inflation.

No. You can open your account with any financial institution that is an HSA provider. If your insurance provider is partnering with a financial institution to provide an integrated package, you may want to consider the benefits of the partnership. However, you should also consider the quality and level of service you’ll receive from the HSA provider. (Don’t forget that an employer making contributions to your HSA cannot deny contributions if you choose a financial institution other than the one recommended by your employer or the employer’s insurance provider.)

We offer unrestricted access to your account. That means you can utilize your HSA Visa debit card, withdraw funds in person at any First Southern branch, or transfer funds and pay bills from your account online.

Stop by any First Southern branch to open your HSA. Or give us a call at 1-866-602-3762. We’ll open your account, order your HSA VISA debit card and mail you your new account number and a signature card for you to sign and return to us with a statement of your beneficiaries. Each month, you’ll get an account statement. If your employer is making contributions on your behalf, be sure to give your First Southern HSA account number to the payroll department.

Stop by any First Southern branch to open your HSA. Or give us a call at 1-866-602-3762. We’ll open your account, order your HSA VISA debit card and mail you your new account number and a signature card for you to sign and return to us with a statement of your beneficiaries. Each month, you’ll get an account statement. If your employer is making contributions on your behalf, be sure to give your First Southern HSA account number to the payroll department.

Additional information on Health Savings Accounts may also be found by visiting www.irs.gov or by speaking with your tax advisor.