Health Savings Account (HSA)

An “Health Savings Account” or HSA is a tax-exempt savings solution for members with a High Deductible Health Plan (HDHP).

Benefits of an HSA

  • No minimum balance requirements1
  • HSA earns dividends computed daily, paid and compounded monthly
  • Convenient account access with your Visa® EMV debit card
  • Funds not used in a given year are rolled over to the next year and grow tax-free with interest earned
  • Tax benefits2
  • Annual contributions are deductible from federal taxes up to the maximum allowable amount
  • Dividends earned are free from federal taxes
  • Qualified withdrawals are free from federal taxes


Q: What do I need to do to get started?
A: First, if you’re not already a member of The Summit, you will need to become one. You’ll need to fill out the Health Savings Account Application verifying that you have an HDHP at your employer and then set up direct deposit into your HSA account if applicable.

Q: Can someone else have access to my HSA?
A: Yes. You can have one other “authorized signer.” You will just need to sign an authorization form at The Summit.

Q: How much can I contribute to an HSA per year?
A. See the chart below for the IRS contribution limits which may change year to year:

IRS Requirements for 2018
  Single Plan Family Plan
Contribution Limit $3,450 $6,900
Catch-Up Contribution (55 or older) $1,000 $1,000
Spouse* N/A $1,000
* If a spouse is also 55 or older, a second HSA must be established and a second contribution of $1,000 could be made to that account. This is only available on a family plan.


IRS Requirements for 2017
  Single Plan Family Plan
Contribution Limit $3,400 $6,750
Catch-Up Contribution (55 or older) $1,000 $1,000
Spouse* N/A $1,000
* If a spouse is also 55 or older, a second HSA must be established and a second contribution of $1,000 could be made to that account. This is only available on a family plan.

Q: What kind of medical expenses does an HSA help pay for?
A: You may use your HSA to pay for qualified medical expenses as well as deductibles, co-pays at doctor offices, prescriptions, plus vision and dental care.

Q: What are the tax benefits of an HSA?
A: Your contributions to an HSA are tax-deductible (including any after-tax deposits), earnings grow tax free and distributions for eligible medical expenses are also tax free. Contributions to your HSA can be made with pre-tax dollars (i.e. payroll deduction through your employer), which reduces your taxable income. In reality, an HSA provides triple tax savings by reducing federal, state and FICA taxes. Consult your tax advisor regarding IRS rules and regulations for Health Savings Accounts.

Q: Is an HSA similar to an Flexible Spending Account (FSA)?
A. No. HSAs have unique features designed to encourage consumer-driven healthcare. Also, unlike an FSA, there is no “use it or lose it” rule. Your HSA balance rolls over from year to year, allowing you to save for future medical expenses.

Q: Can I roll over unused funds from an FSA or a Health Reimbursement Account (HRA)?
A. Yes. Regulations allow you to roll over unused funds from an FSA or HRA on a one-time basis. Please talk to your employer or third-party administrator for more details.

Q: Can I transfer funds from an IRA to my HSA?
A: Yes, regulations allow a one-time rollover from an IRA to an HSA, up to the annual HSA contribution maximum. Please consult your tax advisor to discuss the benefits and tax reporting requirements prior to transferring funds.

Q: Can I transfer funds from an existing HSA into my Summit HSA?
A: Yes, please contact your financial institution and request to have the funds sent over to The Summit.

Q: If I leave my present employer, do I lose the money that remains in my HSA account?
A: No. Your HSA is completely portable and your money rolls over year to year. You can always take the funds with you even if you change jobs, become unemployed or change your medical coverage.

Q: What happens if I want to withdraw money for non-medical expenses after age 65?
A: After age 65, funds can be withdrawn for non-medical expenses without penalty. However, you would still be responsible for income taxes on the funds.

Q: If I am 65 or over and enrolled in Medicare, can I have an HSA?
A: Individuals who are entitled to Medicare are not eligible to establish or contribute to an HSA. Entitled means actually covered under any part of Medicare – Part A, Part B, a Medicare Advantage plan (Part C) or Part D. Individuals who are eligible for Medicare, but are not enrolled, may establish and contribute to an HSA account.


1) Minimum balance of $100 required to earn dividends. 2) Subject to the IRS rules and regulations for HSA accounts.


Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.
National Credit Union Administration, a U.S. Government Agency

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