Health Savings Accounts (HSA)

a smart choice for managing current and future health expenses.

Health Savings Account Features:

No initial deposit or ongoing balance requirements
Benefit from higher interest rates with tiered rates at the following levels: $2,499.99 & Under | $2,500.00–$9,999.99 | $10,000.00–$24,999.99 | $25,000.00 & Over
Interest compounded monthly
Must be enrolled in a high-deductible health plan (HDHP) to qualify
Contributions are made pre-tax
Unused funds roll over year to year; there's no “use it or lose it”
Remains with you, regardless of change in coverage or employment

Digital Banking Features:

Access your account anywhere with Online Banking or our convenient goBank Mobile App
Stay informed with real-time account alerts
Access to free Online Bill Pay
Send and receive money with Zelle^®
Deposit checks anywhere, anytime with Mobile Deposit
Access eStatements up to 18 months for easy record-keeping
Free 24/7 Telebanc (telephone banking)

Debit MasterCard^® Perks:

Access to nearly 40,000 surcharge-free ATMs nationwide with MoneyPass^®
Card Management alerts and controls
Easy and secure payments with Digital Wallet

Existing Bank First customers may open an account by contacting their local office. If you are new to Bank First, please visit a nearby location to get started today!

View All Savings Options

HSA Benefits

Savings tool with investment earnings
Flexibility to pay current medical expenses or save for future needs
Tax-deductible contributions
Tax-deferred earnings
Tax-free withdrawals (if used properly)
Balance carries over from year-to-year
Remains with you, regardless of change in coverage or employment

HSA Eligibility

You must meet certain requirements to be eligible for an HSA; most importantly, you must be covered under a high deductible health plan (HDHP). An HDHP generally has lower premiums than other types of health plans, but also has higher deductibles. Until your deductible is met, you must pay for all your medical expenses - except for preventive care, which is almost always covered. Assuming your HDHP is HSA-compatible, you can use your HSA assets to pay for these expenses.

An HDHP is considered HSA-compatible if it satisfies the annual deductible and out-of-pocket expense limits (see chart). Check with your health insurance provider to see if your health plan meets these requirements.

Besides having coverage under a HDHP, to be eligible for an HSA, you:

cannot be covered by another health plan (with limited exceptions),
cannot be enrolled in Medicare, and
cannot be eligible to be claimed as a dependent on another person's tax return.

Note that your HSA eligibility is determined as of the first day of each month.

Contribution & Out-of-Pocket Limits for HSAs and High-Deductible Health Plans

Table of contribution & out-of-pocket limits for HSAs and HDHPs
Plan Type	2024 Limits
HSA contribution limit (employer + employee)	Self-only: $4,150 Family: $8,300
HSA catch-up contributions (age 55 or older)	$1,000
HDHP minimum deductibles	Self-only: $1,600 Family: $3,200
HDHP maximum out-of-pocket amounts (deductibles, co-payments, and other amounts, but not premiums)	Self-only: $8,050 Family: $16,100

Funding Your HSA

HSA contributions must be made by your tax return due date (April 15), and generally are tax deductible. The maximum amount you (and/or your employer) can contribute to your HSA each year depends on if you have self-only or family HDHP coverage. Also, if you attain age 55 before the close of a taxable year, your contribution limit increases by $1,000 for the annual catch-up contribution.

Using Your HSA

You can withdraw money from your HSA tax free if the money is used to pay qualified medical expenses as permitted under federal tax law. This includes most medical, dental, and vision care, but generally does not include health plan premiums. You can pay medical expenses for yourself as well as for your spouse and any dependents, even if they are not covered by the HDHP.

Qualified medical expenses also include the premiums you pay for qualified long-term care insurance, health insurance when unemployed, health insurance under COBRA continuing health coverage, and certain health insurance premiums after age 65.

Use your HSA money for medical expenses now or in retirement. Keep in mind that HSA distributions not used for qualified expenses are subject to ordinary income tax and a 20 percent IRS penalty tax if taken before age 65 (unless due to death or disability). See a competent tax advisor to help you calculate the savings!