HOW DO I SPEND IT?

HSA funds are payable on demand. There are no restrictions on when or how you may take distributions.

Qualified Medical Expenses:
In order to recognize the tax advantages of an HSA, funds must be used for qualified medical expenses.

The link below will help you determine whether an expense is eligible or not. The list is provided with the understanding that our bank is not engaged in rendering tax advice. Use this list as a quick reference. If you need additional information, refer to IRS Publication 503 or contact a tax professional. Eligible Medical Expenses

What happens to unused HSA funds?

No “use it or lose it rules”
- All amounts in the HSA are fully vested
- Unspent balances in accounts remain in the account until spent
- Encourages account holders to spend their funds more wisely on their medical care
- Encourages account holders to shop around for the best value for their health care dollars

Accounts can grow through investment earnings, just like an IRA
- Same investment options and investment limitations as IRA
- Same restrictions on self-dealing as with IRAs

What happens when I reach age 65?
As of age 65, funds can continue to be used for eligible medical expenses tax free. You may also use the funds for non-eligible expenses and you are only subject to ordinary income tax without any IRS penalty.