My Utah is mindfulness in the mountains
and peace of mind about medical expenses.
Healthcare expenses can put a strain on your finances.
Bank of Utah’s Health Savings Account (HSA) is an ideal way to manage
the costs of health care. Saving money through an HSA can help you
cover a variety of expenses, from doctor visits to medications.
Plus, the HSA offers significant tax benefits.
You must have a high-deductible health plan to open an HSA. According
to federal regulations, you cannot open an HSA if you’re enrolled in
Medicare or if someone claims you as a dependent on their tax return.
Open an HSA by visiting one of our Bank of Utah locations.
With tax-deductible contributions, tax-free earnings and tax-free withdrawals for qualified medical expenses
With online and mobile banking that’s available 24/7
With your free Bank of Utah Visa HSA debit card or by ordering HSA checks
With tiered interest, the more you save, the more you earn, the more you'll have when you need it most (see rates below)
With funds that do not expire, your balance rolls over annually, even if you change employers or high-deductible health plans
With the added benefit of using your funds tax-free for any purpose when you reach age 65
How Do I Open an HSA?
First, you need a high-deductible health plan. Your insurance provider can help you determine which plan will be best for you and if it qualifies for an HSA under IRS guidelines.
Once you have a qualifying health plan, visit any Bank of Utah branch to open your account.
Can I Open an HSA if I’m Enrolled in Medicare?
According to federal regulations, you cannot open an HSA if you’re enrolled in Medicare.
Can I Open an HSA if I am a Dependent on Someone’s Tax Return?
No, federal regulations state that you cannot open an HSA if someone claims you as a dependent on their tax return.
How Do I Contribute to an HSA?
Contributions to your HSA can be made by:
You can contribute as often as you would like up to the predetermined IRS limit. This limit is different for individual coverage and family coverage. Check with your insurance agent or the IRS for the current year contribution limits.
How Do I Pay for Health Expenses?
Bank of Utah’s Health Savings Account comes with a free Visa debit card. HSA checks are also available to purchase.
What is the Daily Limit for My HSA Debit Card?
The daily HSA debit card limit is $2,500. If your medical expense is going to cost more than that, you should pay your provider by check. If you’re unable to pay by check, please contact Bank of Utah for assistance.
How Does Tax Reporting Work?
Three tax forms are associated with HSAs: form 8889, 1099-SA and 5498-SA.
You must file form 8889 as part of your annual tax return to report the amount of distribution used for qualified healthcare expenses.
Bank of Utah will send you a 1099-SA form with a report of distributions from the HSA annually (the amount of money you spent from your HSA account during the tax year). This form is usually available by Jan. 30.
We will also send you a 5498-SA form with a report of contributions (the amount of money you deposited into your HSA during the tax year). This form is usually available after April 15.
Do I Need to Save my Itemized Receipts?
You should retain your receipts for tax purposes, should the IRS request documentation.
What If I Use My HSA for a Nonqualified Expense?
If you use funds from your HSA for a nonqualified medical expense, you will be subject to tax on the amount of the distribution and a 20 percent penalty tax. The penalty tax can be expensive, so contact your insurance provider if you are unsure if a payment is qualified.
How do HSAs and Flexible Savings Accounts (FSAs), or Cafeteria Plans, Compare?
|Used for out-of-pocket health expenses||X||X|
|Employee contributions allowed||X||X|
|Employer contributions allowed||X||X|
|Employers receive deductions for payments||X||X|
|Works with any health plan||X|
|Unused balance rolls over annually||*||X|
|Investment options with tax-free growth||X|
|Portable for consumer||X|
|Funds can be used for any purpose after age 65 or if disabled||X|
*Options vary depending on your employer.