A Health Savings Account is a way to pay for health-related expenses, sure. But there are really great benefits too. Learn more about how to save on taxes and how you can use an HSA to pay for qualified medical expenses for you and your family today and into the future. Make your health care dollars go further.

Health Savings Account

The easy way to save for and pay for healthcare expenses.

Life has its surprises but with an HSA from United, paying for qualified medical expenses won't be one of them. If your insurance policy is a High Deductible Health Plan (HDHP), it can hurt your wallet too. Our Health Savings Account (HSA) is an easy way to save for medical expenses and health care costs like doctor visits, prescriptions, dental care, and more.

Plus, withdrawals for qualified medical expenses and dividends are both tax-free. And the HSA Debit Card makes paying for expenses quick and easy.

the member perks you'll love

Your employer or insurance carrier may change, but you can always keep your funds at United.

tax-deductible contributions
free Visa debit card to make paying your qualified medical expenses easy
no annual or monthly maintenance fee
let us calculate your dividends daily and we'll pay you monthly

benefits of an HSA

Save money and save on taxes? Yes, please.

Keep Uncle Sam out of your pocketbook. The money you contribute to your HSA goes in, grows and comes out income-tax free when used for qualified medical expenses. You know you're going to need it — so why not save on taxes, too?

There is no "use it or lose it" rule.

You get to keep the money in your HSA, no matter what, even if you change jobs or move off a qualifying high-deductible health plan. When you, your employer or anyone else contributes to your HSA, it stays there so you can use it when you need it. Plus, any money you keep in your account may earn dividends and once your HSA reaches a certain designated balance, you may choose to invest a portion of your HSA dollars in mutual funds to grow your balance.

It's a family affair.

You can use your HSA to pay for the qualified medical expenses of anyone you claim on your taxes, even if you're only enrolled with single coverage. This is a great way to plan for unexpected medical expenses, from your deductible to an ER visit, for the whole family. This includes your spouse, any dependents you claim on your tax return, or dependents claimed on your ex-spouse’s tax return, or anyone you could have claimed as a dependent.

Prepare your future.

You may not be ready to retire, but chances are you’re already planning for it. An HSA is a great tool to help you prepare for future health care costs and retirement. After turning 65 you can use your HSA funds for non-qualified expenses, like a boat or an exotic vacation. You’ll pay ordinary income tax on those funds, but the 20% tax penalty no longer applies. As you're planning for the future, your HSA can ease your mind and prepare you for retirement by saving money income tax-free. Once you're 65, your HSA is treated like a traditional IRA if you withdraw money for non-medical expenses.

qualifying for an HSA

HSAs from United can be used to pay for qualified health expenses for yourself and your covered dependents tax free. To be an eligible individual and qualify for an HSA, you must meet the following requirements, as defined by the IRS:

  • You cannot be claimed as a dependent on someone else's tax return.
  • You must be covered under a high deductible health plan (HDHP) on the first day of the month.
  • You are not enrolled in Medicare, TRICARE or TRICARE for Life or other health coverage except what is permitted by the IRS.
  • You haven’t received Veterans Affairs (VA) benefits within the past three months, except for preventive care. If you have a disability rating from the VA, this exclusion doesn’t apply.
  • You do not have a health care flexible spending account (FSA) or health reimbursement account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.

The 2024 IRS limits are $4,150 single and $8,300 family. HSA participants 55 or older are also eligible for an additional $1,000 contribution catch up amount. Pre-tax dollars may be used for qualifying expenses such as prescriptions, co-pays and deductibles, medical supplies, dental and vision expenses and Medicare premiums after age 65. HSA’s are IRS auditable so those interested should confirm they meet eligibility:

  • Covered under a qualifying high-deductible health plan (HDHP)
  • No other health coverage except what is permitted by the IRS
  • Not enrolled in Medicare, TRICARE or TRICARE for Life
  • Cannot be claimed as a dependent on someone else's tax return

good to know

HSAs are often confused with a normal deposit account. They are not. All HSA transactions are reported to the IRS for tax purposes and may not be reversed.

Especially with online banking, it is common for Members to sometimes remove or deposit funds to their HSA by accident and then try to reverse the transaction. Unfortunately, HSA transactions can only be reversed as an exception with assistance from the IRA Department. These errors cause tax consequences and IRS penalties if done. Likewise, contributions to your HSA cannot be made for a prior tax year.

talk to us

Thinking about opening an HSA? Visit a local branch, chat with us online, or call (888) 982-1400 to get one-on-one assistance and answers.

Start an HSA Today