Health Savings Account

A Health Savings Account (HSA) is a type of tax-exempt custodial account that helps people with qualified high-deductible health plans (HDHPs) save money for out-of-pocket medical expenses like doctor visits and prescriptions. Individuals can open an HSA on their own, through an employer or an eligible healthcare provider.

Always check with your employer or healthcare provider, but typically you're eligible for an HSA if:

• You're covered under a high-deductible health plan (HDHP)
• You are not also covered by any other health plan that is not an HDHP. There are certain exceptions for plans that provide for
  preventative care or other "permitted" coverage. Always check with your employer or health care provider for eligibility.
• You're not enrolled in Medicare
• You're not a dependent on another person's federal income tax return

Our HSA account offers you:

• An interest-bearing checking account with competitive rates
• $100 minimum daily balance to earn interest
• No account set-up fee, but a $24 annual fee applies
  •  Fee waived for Premier Relationship Banking and Private Bank Checking account owners
• A debit card - use it at doctor's offices, pharmacies, and drug stores
• Check access - includes your first pack of starter checks
• Online and mobile banking
• Investment Account available when balance in excess of $2,500¹
  Contact Fulton Financial Advisors HSA Investment Team for details at HSAInvestmentOptionsFFC@fultonbank.com

HSA Federal Tax Benefits

Employer contributions to your HSA may be excluded from your gross income.  You can deduct contributions made by anyone other than your employer, as long as they don’t exceed the maximum annual contribution amount.   Contributions remain in your account until you use them.  The interest or earnings grow tax free and the distributions for qualified medical expenses are also tax free. Your tax advisor or legal professional can provide guidance if you have questions. 

Contributors to an HSA

Once you have determined that you meet the eligibility requirements for an HSA, you, your employer, your family members, and any other person may contribute to your HSA.

HSA contribution limits and deductible requirements

Contribution limits and deductible requirements are set by the Internal Revenue Service (IRS) each year. There is a limit on the 'out of pocket' expenses that can be incurred during the tax year. You can reference the IRS Website to check limits and requirements. For guidance, contact your tax advisor or legal professional.