Skip to content
Health Savings Account

Health Savings Account (HSA)

You’ve been dreaming of using your savings for a vacation or down payment on a home — don’t wipe out that money because of an unexpected health expense. Maintain a dedicated plan for your health with an HSA.

Both you and your employer can make contributions to your account. Changing jobs? Your money moves with you. And there’s no “use it or lose it” policy, so your account will be there for you throughout the years.

  • Greater personal control over healthcare management and expenses
  • Prepare for qualified medical expenses
  • Earn interest above standard savings on balances above $1
  • An HSA provides triple tax savings:
    • Tax deductions when you contribute to your account
    • Tax-free earnings through investment
    • Tax-free withdrawals for qualified medical, dental, vision expenses, and more¹
  • Contributions are tax-free and can be made by you, your employer, or a third party
  • Funds can be withdrawn at any time²
  • Use funds by debit card, check, online transfer, or in-person withdrawal³
  • Free online banking
  • Free eStatements; $1 monthly fee to receive paper statements
  • Family and individual plans offered4
  • Unused funds remain in account year after year; no "use it or lose it" policy
  • Keep your HSA in your name, regardless of career or life changes
  • FDIC insured
  • $1 minimum deposit to open

Any adult can have an HSA if they: 

  • Have coverage under an HSA-qualified high-deductible health plan (HDHP)
  • Have no other first-dollar medical coverage (other types of insurance ARE permitted, such as specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance)
  • Are not enrolled in Medicare
  • Cannot be claimed as a dependent on someone else's tax return

What Is a "High Deductible Health Plan" (HDHP)?

You must have coverage under an HSA-qualified HDHP to open an HSA. An HDHP is a health insurance plan that does not cover first dollar health care expenses (i.e., your "deductible") but will generally cover you after that. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account.

Set Yourself Up For Future Success

¹Consult with a tax advisor.

²You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 20% penalty.

³First two MasterCard® HSA debit cards are free; first 40 paper checks are free.

4For 2023, the maximum amount you can contribute to an HSA is $3,850 for a single plan or $7,750 for a family plan. There is no minimum contribution; you have no obligation to fund your HSA after it is established.

Our deep community roots make us proud to serve Western NY!