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Healthcare costs are expensive. HOMEBANK is pleased to provide Health Savings Accounts (HSAs) to help simplify managing your medical expenses. See below to find out if a HSA is right for you.

What is a Health Savings Account?

A Health Savings Account (HSA) is a tax-exempt trust or custodial account established exclusively for the purpose of reimbursing qualified medical expenses for you, your spouse, and your dependents.

Features of HOMEBANK’s HSA

  • $50 minimum balance to open an HSA
  • $3 monthly maintenance fee
  • Receive your choice of an ATM/VISA card or duplicate checks
  • Monthly account statements
  • View your account balance online
  • Deposited funds will earn interest on balances over $50

Am I Eligible for a HSA?

You are eligible to make or receive an HSA regular contribution if, with respect to any month, 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 preventative care and limited types of permitted insurance and permitted coverage);
  • Are not enrolled in Medicare;
  • Cannot be claimed as a dependent on another person’s tax return

What is an HDHP?

A HDHP is a plan with an annual deductible of at least $1,500 in 2023 for single (self only) coverage or $3,000 in 2023 for family coverage. These amounts are subject to cost-of-living adjustments (COLAs).

Are There Other Requirements for the HDHP?

Yes. For HSA purposes, the HDHP must limit out-of-pocket expenses. The maximum out-of-pocket expenses, which include money applied to your deductible and your co-insurance for covered charges, must be no more than $7,500 in 2023 for single coverage and no more than $15,000 in 2023 for family coverage. These amounts are subject to cost-of-living adjustments (COLAs).

How is a HSA Established?

You establish a HSA the same way you establish an IRA – with a qualified custodian.

Who Can Contribute to my HSA?

If you meet the eligibility requirements for a 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.

What Happens to My Funds if I Do Not Use Them Within a Year?

A HSA is not a “use it or lose it” account. Your funds will not expire if you do not use them within the year. Funds in your HSA rollover into the next calendar year when there is a balance.

How Much Can I Contribute to My HSA?

Beginning in 2018, HSA contributions are no longer limited by a health plan’s deductible amount, thus raising contribution amounts for most HSA holders. Please refer to the table below for 2022 and 2023 contribution limits.

2022 and 2023 HSA Maximum Contribution Limits

A HSA owner may take a one time (once-in-a-lifetime) tax free distribution from his or her IRA, and transfer that amount to an HSA. The provision does not apply to SEPs or to SIMPLE retirement accounts.


HSA - Self-Only Coverage

Self-Only Coverage

Self-Only Coverage



Self-Only Coverage



HSA - Family Coverage

Family Coverage

Family Coverage



Family Coverage



Catch-Up Contribution Limits

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. The chart that follows shows these additional amounts.

HSA - Tax Year

Tax Year

Tax Year



Tax Year




How Do I Withdraw Funds?

Write a check or use your HSA debit card to pay for qualified medical expenses to your health services provider. You may also make a direct withdrawal of funds from HOMEBANK. It is very important to save your receipts and statements. You will need them to complete your annual tax return.

What are the Federal Tax Benefits of a HSA?

Contributions to a HSA are fully deductible. The earnings grow tax deferred, and distributions for qualified medical expenses are tax-free. Consult with your tax or legal professional for guidance.

How Do I Claim the Federal Tax Deduction for My HSA Contribution?

Contributions made by you, your family members, and any other person on your behalf, which do not exceed the maximum annual contribution amount, are deductible by you when determining your adjusted gross income for your federal tax return. You cannot deduct employer contributions, and these contributions will not count as wages for federal income tax purposes.

When is the Contribution Deadline for Funding a HSA?

Regular and catch-up HSA contributions can be made at any time for a taxable year up to and including your federal income tax return due date, excluding extensions, for that taxable year. The due date for most taxpayers is April 15.

How are HSA Distributions Taxed?

Distributions from your HSA, used exclusively to pay for qualified medical expenses for you, your spouse, or your dependents, are excludable from your gross income. Any other distributions are includable in your gross income and are subject to an additional 10% tax on the amount includable, except in the case of distributions made after your death, your disability, or your attainment of age 65. HSA distributions that are not rolled over will be taxed as income in the year distributed, unless they are used for qualified medical expenses. Any qualified medical expenses must be incurred only after the HSA has been established.

What Happens to my HSA in the Event of my Death?

  • Spouse Beneficiary – If your spouse is the beneficiary of your HSA , the HSA becomes his/her HSA.
  • Non-Spouse Beneficiary – If your beneficiary is not your spouse, the HSA will cease to be a 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 taxable on your final return. For other beneficiaries, the fair market value of your HSA is taxable to that person in the tax year that includes such date.
  • For your reference, please refer to IRS Publication 592 – Covered Medical Expenses and IRS Publication 969 – Health Savings Accounts.
  • For more information about HOMEBANK’s Health Savings Accounts, please contact one of our Customer Service Representatives at (573) 769-2001.
  • This information is effective for tax year 2018 and thereafter. This information is intended to provide general information concerning federal tax law governing HSAs. It is not intended to provide detailed explanation of the rules or how such rules may apply to your individual circumstances. For specific information, you are encouraged to consult your tax or legal professional. The IRS web site,, may also provide helpful information.