Health Savings Account (HSA)
Learn more about how you could put aside tax-free¹ savings for future medical expenses with a Health Savings Account from Flagstar Bank.
Made to keep you healthy
Do you have a high-deductible health plan (HDHP) and are looking for a more convenient, tax-advantaged¹ way to pay your medical expenses? Then a Health Savings Account (HSA) is a great choice for your healthcare-related costs. Unlike flexible savings accounts, any unused HSA funds roll over and accumulate—ready and waiting to be used for medical expenses in future years.
If you wish to calculate your HSA contributions and savings, head over to our HSA Contribution Calculator.
KEY ACCOUNT FEATURES:
- Contributions are tax free1
- Deposited funds grow tax free1
- Qualified Medical Expense withdrawals are tax-free
- 24-Voice Phone Banking Call (888) 248-6423
- Contributions can be made up to the maximum amount through April 15 of the subsequent year
- Funds withdrawn may be used for qualified medical expenses anytime
All Health Savings Accounts come with:
We want to help you save on out-of-pocket expenses.
An unexpected medical bill doesn't have to become a financial emergency when you set aside tax-free1 funds in a Health Savings Account. In the case of an emergency event, your insurance may not cover the payment unless you meet your deductible. You can use your tax-free¹ money from an HSA to pay the deductible, then insurance may cover the rest depending on your plan. If you’re trying to determine if you qualify for an HSA, visit one of our many convenient Flagstar Bank locations or see below for the most frequently asked questions.
HSA FAQs
An HSA is a tax-advantaged account1 established to pay qualified medical expenses of an account holder who is covered under a high-deductible health plan (HDHP). The funds contributed to an HSA are not subject to federal income tax at the time of deposit. With money from this account, you can pay qualified healthcare expenses until your deductible is met. Then, your insurance company pays for covered expenses in excess of your deductible. Any unused funds can be used to pay for qualified medical expenses in the future years.
An eligible individual is anyone who:
- Is covered under an HDHP.
- Is not covered by any other health plan that is not an HDHP.
- Is not entitled to Medicare benefits and may not be claimed as a dependent on another person’s tax return.
The HSA can be used:
- To pay for qualified medical, dental, vision and prescription drug expenses as defined in IRS Publication 502.
- As a tax-free supplemental income upon retirement at age 65 for non-qualified expenses; money withdrawn for non-qualified expenses before the age of 65 is taxable and is subject to a 10% penalty.
IRS form 8889 must be completed with your tax return each year to report total deposits and withdrawals from your account. You do not have to itemize to complete this form.
An HSA is tax free if used for qualified medical expenses. Earnings on money in the HSA are not considered part of your gross income. Any interest accrued in the account is not taxable until used.1
Flagstar’s HSA requires:
- A $50 minimum deposit to open an HSA.
- A $500 minimum daily balance to avoid a $5 monthly fee.
- A $5 annual HSA plan fee.
The HSA is portable, allowing you to move the account from job to job.
As the HSA account holder, you must ensure that distributions are used for qualified medical expenses. Records of medical expenses should be maintained as evidence that distributions have been made for these purposes. You must also ensure that contributions to the HSA do not go beyond the maximum limits.
HSA statements itemizing deposits and withdrawals will be delivered by standard mail or online.
You may also be interested in:
INFORMATION TO NOTE:
Rate information — Your interest rate and annual percentage yield may change.
Frequency of rate changes — We may change the interest rate on your account at any time.
Determination of rate — At our discretion, we may change the interest rate on your account.
Compounding and crediting frequency — Interest will be compounded every month. Interest will be credited to your account every month.
Minimum $50 opening balance required; open in a branch only.
Daily balance computation method — We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.
Accrual of interest on noncash deposits — Interest begins to accrue on the first business day after the banking day you deposit noncash items (for example, checks).
Interest accrual upon account closure — Interest accrues up to the business day that you close your account and is credited when the account is closed.
1Please consult a tax or legal expert for advice.
2Not all devices may be supported. Customer eligibility required. Personal customer checking and savings accounts only.
3Currency conversion fee may apply to transactions outside the U.S.
4This debit card is issued by Flagstar Bank pursuant to a license from Visa U.S.A. Inc.lease consult a tax or legal expert for advice.
We reserve the right to change accounts at any time without notice. Please see the complete Disclosure Guide for additional details.