Health Savings Account
Whether today or sometime in the future, chances are you’ll be faced with medical expenses not covered by your insurance plan. A Health Savings Account from SCBT might be just what you need.
The HSA is a savings account that allows individuals with a High Deductible Health Plan (HDHP) to pay for qualified medical expenses like prescriptions, co-pays, dental care, eye care and more. Contributions made to the HSA account earn interest and may help you save on taxes1. HSA funds may be accessed at any time with an HSA Visa® Debit Card or checks.
- No minimum opening balance
- No fees
- Competitive interest rates
- HSA Visa® Debit Card
- Free first order of checks
- Online Banking
- Mobile Banking
- Free eStatements
- Phone Banking
- Contributions may be tax deductible, and interest earned may be tax-deferred1
- Anytime access to pay for medical expenses
Not only will your contributions to the account roll over from year to year, but the money you save will be available for you at any time. Whatever your needs may be, the SCBT Health Savings Account is your smart, easy way to peace of mind.
Discover if an HSA is right for you.
Health Savings Accounts were created to combat the rising cost of healthcare. Recent trends in cost-shifting from employers to employees has resulted in employees seeking solutions to help control their medical expenses. With an HSA, you are now able to control how your medical dollars are spent and receive tax-free saving benefits1 at the same time.
What is an HSA?
Who is eligible?
How much can I contribute?
How do I claim the Federal Tax Deduction for my HSA Contributions?
What happens to my HSA in the event of my death?
How are HSA distributions taxed?
How do you pay for expenses?
Where is my card accepted?
What limits apply?
How do I use my checks?
How else can I access my account?
HSA’s are tax-exempt custodial accounts established exclusively for the purpose of paying for reimbursing qualified medical expenses by you, your spouse or your dependents.
An HSA plan has 2 components:
- A qualified high deductible health insurance plan (HDHP)
- An HSA at a financial institution
This account is designed to pay for routine medical expenses and/or provide savings for the future. Money put into the account can be used either during the year or accumulated.
Allowable medical expenses are defined by the IRS and are much broader than most providers (i.e. includes dental, vision). Individuals can deduct dollars contributed to the HSA account from their gross income, resulting in tax-free medical dollars.1 HSA premiums are lower than other fully-insured plans with co-pays. The account is similar to an IRA account; however, it is for qualified medical expenses only.
You are eligible for HSA contributions if you:
- Are covered under a high-deductible health plan (HDHP)
- Are not also covered by any other health plan that is not an HDHP (with certain exceptions for plans providing preventive care and limited types of permitted insurance and permitted coverage)
- Are not enrolled in Medicare
- Cannot be claimed as a dependent on another individual’s tax return
Note: A spouse can have single coverage under an HSA, if they are not covered under the other spouse’s plan. The account however, is for the individual covered under the HSA qualified plan only. Your insurance provider must be able to verify that your plan is a qualified HDHP.
HSA rules are determined at the federal level. Individuals may be eligible under state guidelines (domestic partners, civil unions, etc.) for qualified health insurance coverage, but not eligible to open the savings account portion of the plan.
If you are eligible, you can establish an HSA in much the same way you would establish an IRA – with a qualified custodian. Each year, you are responsible for determining your allowable annual HSA contribution and whether you have qualified medical expenses eligible for reimbursement with nontaxable HSA distributions. (include chart from HSA brochure)
Additionally, a “catch-up” contribution is available for eligible individuals who are age 55 or older by the end of their taxable year and have not enrolled in Medicare.
If you meet the eligibility requirements for an HSA, you, your employer, your family members, and any other person (including non-individuals) may contribute to your HSA. This is true whether you are self-employed or unemployed.
New contributions to an HSA may be fully deductible, the earnings grow tax deferred, and distributions to pay or reimburse qualified medical expenses are tax free.3 Rollovers and transfers from HSAs, IRAs, Archer medical savings accounts, health reimbursement arrangements, and health flexible spending accounts are not deductible. The deadline for regular and catch-up HSA contributions is your federal income tax return due date, excluding extensions, for that taxable year, typically April 15.
- Spouse Beneficiary—If your spouse is the beneficiary of your HSA, the HSA becomes his/her HSA.
- Nonspouse Beneficiary—If your beneficiary is not your spouse, the HSA ceases to be an HSA as of the date of your death. If your beneficiary is your estate, the fair market value of the HSA as of the date of your death is included as income on your final income tax return. For other beneficiaries, the fair market value of your HSA is included as income for the recipient in the tax year of your death.
The qualified medical expenses must be incurred after the HSA has been established.
HSA distributions used exclusively to pay for or reimburse qualified medical expenses incurred by you, your spouse, or your dependents are not included in gross income.
Any other distributions are included in income unless rolled over. Distributions not used to pay for or reimburse qualified medical expenses or not rolled over are subject to an additional 20 percent tax unless made after your death, your disability, or after age 65.
HSA custodians are not required to determine whether HSA distributions are used for qualified medical expenses.
You can pay for eligible medical expenses with your Free HSA Visa® Debit Card or by check.
Tips on accessing your account.
Your debit card is accepted at any medical service/product provider (e.g., doctor’s offices, pharmacies, medical supply stores). This cannot be used as an ATM card. Your card should only be used to pay for qualified medical expenses. If you use the card to pay for non-qualified medical expenses, you may be subject to income tax on those funds and IRS penalties.
There are no limits on the number of transactions per day. However, PIN and signature-based transactions cannot exceed $2,000 per day2.
Check writing capabilities offer customers immediate access to their Health Savings Account, so you don’t have to wait to get reimbursed by a third party administrator or an insurance company. The checks should only be used for medical purchases or medical services. A listing of qualified medical expenses can be found in IRS Publication 502. Check purchases are limited only by your available account balance.3
Transfers, deposits and inquiries may be made 24/7 through our Phone and Online Banking services.
- Phone Banking: 1-800-763-0555
- Mobile Banking
- Online Banking
For more information including qualified medical expenses, contact your local banker.