Health Savings Account Checking

If you are enrolled in an HSA-eligible high-deductible health plan (HDHP), a First Tech Health Savings Account Checking account can help you manage qualified medical expenses today while saving for future needs.

Health care costs can be hard to predict. An HSA can help you stay prepared with a dedicated account for qualified medical expenses, valuable tax advantages and funds that roll over year after year. For members who want flexible access to their money and a practical way to plan, HSA Checking can be a useful part of a broader financial strategy.

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What is a Health Savings Account?

A health savings account, or HSA, is a tax-advantaged savings account for people enrolled in eligible high-deductible health plans, also called HDHPs. It helps you set aside money for qualified medical expenses and can support both short-term health care costs and long-term savings goals.

An HSA can help you pay for care now, while also giving you a way to prepare for future expenses. Because unused funds roll over year after year, your balance can grow over time and provide added flexibility as your needs change.

Who may be eligible to contribute

In general, you may be able to open and contribute to an HSA if all the following apply:

You are enrolled in an HSA-eligible high-deductible health plan

• You are not enrolled in another health plan (such as a partner’s or parent's plan, that is not HSA-eligible)
• You are not enrolled in Medicare
• No one can claim you as a dependent on their tax return

Eligibility can vary based on your health coverage and tax situation, so it is important to review your plan details and consult a qualified tax professional if you have questions.

Why consider a First Tech HSA checking account?

A Health Savings Account checking account is designed for eligible members who want a clear, organized way to set aside money for health care expenses.

Save on taxes in multiple ways

HSAs offer potential triple tax advantages:

• Contributions may be tax-deductible
• Earnings may grow tax-free
• Withdrawals for qualified medical expenses may be tax-free

These features can help you make more of every dollar you set aside for care.

Keep health care funds separate and accessible

An HSA checking account helps you keep money for qualified medical expenses separate from everyday spending. Before the age of 65, you can use HSA funds for eligible costs such as doctor visits, prescription medications, dental care and vision care.

Build savings that stay with you

HSAs do not follow a use-it-or-lose-it model. Unused funds remain in your account and roll over from year to year, which can help you prepare for future expenses with more confidence.

Support today's needs and tomorrow's goals

You can use HSA funds for qualified medical expenses at any time. If you do not need all your funds right away, your balance can continue to grow and support future health care needs.

Add flexibility to long-term planning

After age 65, you can withdraw HSA funds for any reason without a penalty. If the funds are not used for qualified medical expenses, they are generally subject to regular income tax. This can make an HSA a helpful complement to your broader retirement planning.

How to get started

• If you are interested in a First Tech HSA checking account, here are a few steps to help you move forward:
• Review your health plan to confirm that it is HSA-eligible
  Gather any questions you have about contributions, qualified medical expenses, rollovers or account use
• Reach out to a tax advisor or applicable representative for your HDHP to answer your questions above
• Connect with the First Tech team to learn more about your HSA Account options
• Schedule a virtual appointment

If you already have an HSA with another provider, ask your tax advisor and/or HDHP contact about options for transitioning your account. The right path may depend on your current provider, your health plan and your individual situation.

How you can use and fund an HSA

If you are under age 65, you can use HSA funds for many qualified medical expenses, including:

• Doctor visits
• Prescription medications
• Dental care
• Vision care

HSA funds may also cover eligible expenses for your spouse and dependents, even if they are not covered under your HDHP. Certain over-the-counter medications and health care products may also qualify for reimbursement. Because eligibility can vary, it is a good idea to review current qualified medical expense guidelines and keep records of your HSA spending.

You may be able to fund your HSA in several ways:

• Automatic paycheck contributions through your employer
• Direct contributions from your personal checking or savings account
• A one-time rollover from an individual retirement account, subject to applicable rules and limits
• Employer contributions, if offered as part of your benefits package

The IRS sets annual contribution limits for HSAs, and those limits vary based on your coverage. Be sure to confirm current limits before making contributions.

Planning for the future with an HSA

One of the most valuable features of an HSA is that your money stays with you. Unused funds roll over from year to year, which can help you build a cushion for future health care expenses.

Some HSA providers may also allow you to invest a portion of your balance once you meet certain account requirements. Investment options vary by provider and may include mutual funds, stocks, bonds or other choices. Before investing your HSA funds, review any minimum balance requirements, investment restrictions, fees and the risks tied to market performance.

If you withdraw HSA funds for non-qualified expenses before age 65, the amount may be subject to taxes and penalties. After age 65, you can withdraw HSA funds for any reason without a penalty, though withdrawals not used for qualified medical expenses are generally subject to regular income tax.