Five Points Bank Blog

The Benefits of Health Savings Accounts(HSAs)

Take the stress out of paying for healthcare by opening a Health Savings Account (HSA).

Even when you have perfect health, it can be expensive to maintain, let alone when an unexpected illness hits. Five Points Bank helps make healthcare more affordable by allowing you to benefit from tax savings when using our HSA, plus the account earns interest and rolls over year to year.

What is a HSA?

Five Points Bank is proud to offer HSA accounts to help you save money on health costs. An HSA provides tax benefits for eligible individuals to pay for qualified medical expenses.

Five Points Bank’s Health Savings Account is a checking account that earns interest. You can write checks on this account or use a debit card to pay for qualified medical expenses. The HSA owner should keep all medical receipts to substantiate distributions to the IRS.

Why should you open a HSA?

Five Points Bank’s HSA includes many valuable features such as:

• No minimum balance required
• Interest earned on the entire HSA balance
• Free online and mobile banking
• Free checks
• Free debit card

Who can open a HSA?

To open an HSA at Five Points Bank, you must:

• Have an HSA-qualified high-deductible health plan
• Have no other first-dollar medical coverage (disability, dental care and other auxiliary insurances are permitted)
• Not be enrolled in Medicare
• Not be claimed as a dependent on someone else’s tax return

If you meet these requirements, come see us at your local branch!

Other important information to know about HSAs

• HSA contributions are tax deductible.
• HSA earnings are tax free.
• At any time, you can use the funds in the account to pay for qualified medical expenses on yourself, your spouse, or your dependent children. You can pay for expenses of your spouse and dependent children even if they are not covered by your High Deductible Health Plan (HDHP).
• Unused funds in your HSA roll over from year to year and will continue to grow as you contribute to your account.
• Five Points Bank will maintain the records necessary for IRS reporting on your HSA. Required reports will be provided to you, or your beneficiary after your death, and the IRS annually.