Health Savings Account

Learn about your health savings account (HSA), tax benefits, and unique features found only in First Dollar.

Colin avatar K Jenn Hocking avatar +2
106 articles in this collection
Written by Colin, Kristle, Jenn Hocking and 2 others
Getting Started

LendingClub Bank HSA Account Closures

Account closed? Received a check for your HSA balance? Here's a guide to what occured and what to do next.
Max A. avatar
Written by Max A.
Updated over a week ago

What if I don’t have a cell phone to activate my account?

If you don’t own a mobile phone to activate your account, check with a household member.
Max A. avatar
Written by Max A.
Updated over a week ago

How do I know if I qualify for the Individual or Family IRS limit?

IRS requirements for annual family contribution limit
Max A. avatar
Written by Max A.
Updated over a week ago

What if I can't find my bank when trying to link a bank account?

Trying to link your bank account but can't locate your bank? Here's what to do.
Colin avatar
Written by Colin
Updated over a week ago

How to link a bank account

A step-by-step guide on how to link your bank account to your HSA
Colin avatar
Written by Colin
Updated over a week ago

Where is my account number?

Looking for your account number? Here's where to find it.
Gigi avatar
Written by Gigi
Updated this week

What is a Health Savings Account (HSA)?

An HSA is an account designed to support your high-deductible health plan (HDHP) so that you can reduce your out-of-pocket expenses.
Colin avatar
Written by Colin
Updated over a week ago

Is linking my bank account through Plaid secure?

Learn how to securely link your bank account through Plaid.
Jenn Hocking avatar
Written by Jenn Hocking
Updated over a week ago

How is a First Dollar HSA different?

First Dollar members enjoy zero-fees, pharmacy savings, exclusive member benefits, and best-in-class investing with TD Ameritrade
Colin avatar
Written by Colin
Updated over a week ago

What are the benefits of an HSA?

1) You own your HSA, not your employer. 2) Your money rolls over yearly 3) It's triple tax-advantaged 4) You can invest your savings
Colin avatar
Written by Colin
Updated over a week ago

Isn't an HSA the same as an FSA?

No. HSA's are used to support HDHP's. Unlike FSA's, you own the HSA, not your employer, and your funds roll over at the end of the year.
Colin avatar
Written by Colin
Updated over a week ago

What's the difference between an HSA and an HRA?

You own the HSA for life while your employer owns the HRA. They're both are designed to help you pay for healthcare.
Colin avatar
Written by Colin
Updated over a week ago

What if I already have an HSA?

You have two options to transfer an existing HSA if you already have one: 1) rollover or 2) trustee transfer.
Colin avatar
Written by Colin
Updated over a week ago

Are HSA funds pre-tax?

Generally, if your employer is sending a portion of your payroll to your HSA, that will be pre-tax money.
Colin avatar
Written by Colin
Updated over a week ago

Do HSA funds rollover?

Yep! Your funds grow from year-to-year.
Colin avatar
Written by Colin
Updated over a week ago

How does an HSA work?

A health savings account (HSA) is the only retirement account that is triple-tax-advantaged. Save, spend, & invest tax-free for your health.
Colin avatar
Written by Colin
Updated over a week ago

Why should I put money into my HSA over some other retirement account like a 401K?

The HSA is a triple-tax advantaged savings vehicle (one more than a 401k).
Colin avatar
Written by Colin
Updated over a week ago

Do I have to get an HSA if I am on a High Deductible Health Plan?

No, but you should! You'll be able to make contributions to your HSA and pay for qualified medical expenses using your pre-tax dollars!
Colin avatar
Written by Colin
Updated over a week ago

Are there any bank fees I should be aware of?

Yes, the First Dollar HSA is fee-free for most users but there are unusual situations that can result in a fee.
Colin avatar
Written by Colin
Updated over a week ago
Am I Eligible?

Can an individual open an HSA?

Individuals can open an HSA if they're on a qualified health plan
Colin avatar
Written by Colin
Updated over a week ago

What if I’m a dependent on someone’s health insurance plan?

As a dependent, HSA funds can be used on qualified health expenses for you.
K
Written by Kristle
Updated over a week ago

Can I be covered under another insurance plan and still be eligible for a HSA?

There are certain coverages that are permitted by the IRS such that you will not be disqualified from opening a HSA account
Colin avatar
Written by Colin
Updated over a week ago

How can I get a HSA?

Find out if you're eligible!
K
Written by Kristle
Updated over a week ago

How many HSAs can I have?

You can have as many HSAs as you want, but you can only contribute the maximum annual contribution limit across all of your HSAs.
K
Written by Kristle
Updated over a week ago

When am I eligible to open an HSA?

You become HSA-eligible on the 1st day of the 1st month that you meet all HSA-eligibility criteria.
Colin avatar
Written by Colin
Updated over a week ago

What are the requirements to open an HSA?

Are you eligible?
K
Written by Kristle
Updated over a week ago

What happens if I am enrolled in Medicare but still have an HDHP? Can I still have a HSA?

Enrolled in Medicare Part A or Part B? Have an established HSA?
K
Written by Kristle
Updated over a week ago

How can you tell if you have a qualifying High Deductible Health Plan (HDHP)?

For starters: Know your annual minimum deductibles and out-of-pocket maximums
Jenn Hocking avatar
Written by Jenn Hocking
Updated over a week ago

What's the connection between HSAs and health insurance premiums?

Premiums are not usually considered to be qualified medical expenses for your HSA, but there are a few exceptions.
K
Written by Kristle
Updated over a week ago

I no longer have an HDHP. Can I use my HSA?

If you're no longer on an HDHP, you can't contribute to it, but you may continue investing and/or paying for qualified medical expenses.
Colin avatar
Written by Colin
Updated over a week ago

What does it mean if my application for an HSA is “pending”?

This means that your First Dollar HSA needs a little extra time to process and confirm everything is correct for your safety and security.
Colin avatar
Written by Colin
Updated over a week ago

Why was my HSA application denied?

Input incorrect identifying information? Pass the Equifax credit report check?
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Written by Kristle
Updated over a week ago

Can I open an HSA account in the middle of the year?

Yes! You can open an HSA at any point as long as you're on a qualifying HDHP.
Colin avatar
Written by Colin
Updated over a week ago
Depositing Money

If I have a family, can I still have a HSA?

Yes! If your spouse and/or family is covered under your HSA-qualifying HDHP you can contribute a higher amount ($7,300 in 2022).
K
Written by Kristle
Updated over a week ago

I made a deposit to my First Dollar account, but I don't see it in my balance.

Missing a one-time contribution, ongoing payroll deposit, or rollover in your account?
Max A. avatar
Written by Max A.
Updated over a week ago

Transferring IRA Funds to Your HSA

You can only roll funds from an IRA to an HSA once during your lifetime, so here are the guidelines!
Max A. avatar
Written by Max A.
Updated over a week ago

Can anyone put money in my HSA?

Yes! Contributions can come from anyone.
K
Written by Kristle
Updated over a week ago

What is HSA Gifting?

Anyone can contribute to your HSA, not just you or your employer.
K
Written by Kristle
Updated over a week ago

How do I deposit money?

Colin avatar
Written by Colin
Updated over a week ago

How much can I contribute into an HSA?

For 2021, families can contribute up to $7,200 and individuals can contribute up to $3,600.
K
Written by Kristle
Updated over a week ago

Who can contribute to my HSA?

Anyone can contribute to your HSA, as long as your contributions do not exceed the maximum annual limit in any given year.
Colin avatar
Written by Colin
Updated over a week ago

I am 55 or older. Is there a catch-up contribution I can make?

If you are 55 or older and not yet enrolled in Medicare, you can make an annual catch-up HSA contribution of $1,000,
Colin avatar
Written by Colin
Updated over a week ago

Can I make HSA contributions and distributions if I am eligible for VA medical benefits?

Colin avatar
Written by Colin
Updated over a week ago

What happens if I contribute too much to my HSA?

You'll potentially have to pay an extra 6% tax on your excess contribution, and you can't claim a tax deduction for the extra contributions.
Colin avatar
Written by Colin
Updated over a week ago

What am I allowed to contribute if I stop being covered under a HDHP midyear?

If you're no longer on an HDHP, you can't contribute to it, but you may continue investing and/or paying for qualified medical expenses.
Colin avatar
Written by Colin
Updated over a week ago

Can I move money from my 401k to my HSA?

Colin avatar
Written by Colin
Updated over a week ago

Is there an income limit or restriction for contributing to an HSA?

Colin avatar
Written by Colin
Updated over a week ago

Is First Dollar a checking or savings account?

Despite being called a health "savings" account, the HSA is actually a checking account!
Colin avatar
Written by Colin
Updated over a week ago

What can I contribute if I enrolled in an HDHP mid-year?

If you enrolled into an HSA-eligible HDHP mid-year, you can still contribute up to the maximum HSA contribution for that year.
Colin avatar
Written by Colin
Updated over a week ago

Can I rollover or transfer money from an IRA into a First Dollar HSA?

Yes! You can make a once in a lifetime transfer from an IRA to an HSA.
Colin avatar
Written by Colin
Updated over a week ago
Withdrawing Money

Can HSA funds be used for my kids?

Yes, as long as they are claimed as dependents
Colin avatar
Written by Colin
Updated over a week ago

Can I use HSA funds for pets?

HSA funds cannot be used for pets
Colin avatar
Written by Colin
Updated over a week ago

Can I use HSA funds for a non-dependent?

No, you can't use your funds for a non-dependent.
Colin avatar
Written by Colin
Updated over a week ago

Can an HSA be used for childcare expenses?

Childcare is not an eligible expense
Colin avatar
Written by Colin
Updated over a week ago

How do I withdraw money from my HSA?

Easily withdraw money from your Savings Dashboard
Colin avatar
Written by Colin
Updated over a week ago

Why was my debit card declined?

Review our checklist to see why your card isn't working.
Jenn Hocking avatar
Written by Jenn Hocking
Updated over a week ago

Why can’t I withdraw money from the ATM with my First Dollar debit card?

Colin avatar
Written by Colin
Updated over a week ago

What do I need to keep to justify spending money on a qualified medical expense?

Colin avatar
Written by Colin
Updated over a week ago

When can I reimburse myself for a qualified medical expense?

Colin avatar
Written by Colin
Updated over a week ago

What happens when I make a distribution from my HSA?

Colin avatar
Written by Colin
Updated over a week ago

What happens if First Dollar goes out of business?

Member accounts are insured by the FDIC through First Dollar's partner bank, Piermont Bank
Colin avatar
Written by Colin
Updated over a week ago

What happens if my distribution was a mistake? How do I fix it to avoid penalty?

Accidentally use your First Dollar debit card for a non-qualified medical expense or other ineligible purchase? You can fix that!
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Written by Kristle
Updated over a week ago

What happens if I use my distribution to pay for a non-qualified expense?

Colin avatar
Written by Colin
Updated over a week ago

Can I pay for health insurance premiums tax-free with my HSA funds?

Colin avatar
Written by Colin
Updated over a week ago
Tax Guidance

How do I correct an excess contribution?

Contributed or deposited past the limit for this year? Let’s correct it!
Max A. avatar
Written by Max A.
Updated over a week ago

I lost my receipt. Now what?

If you lost your receipt, here are some things that you can do.
Max A. avatar
Written by Max A.
Updated over a week ago

How are my employer’s contributions reported?

They're reported on your W-2.
Colin avatar
Written by Colin
Updated over a week ago

Does filing a tax extension affect the contribution deadlines?

TLDR: Nope!
Jenn Hocking avatar
Written by Jenn Hocking
Updated over a week ago

What’s the 2021 contribution deadline?

K
Written by Kristle
Updated over a week ago

What are the 2022 contribution limits?

$3,650 for individuals, and $7,300 for families.
Jenn Hocking avatar
Written by Jenn Hocking
Updated over a week ago

Where should I record my distributions and contributions?

Colin avatar
Written by Colin
Updated over a week ago

What is the information included in boxes 2 and 3 on the 5498-SA form?

Colin avatar
Written by Colin
Updated over a week ago

What is the information in boxes 1, 2, and 3 on the 1099-SA form?

Colin avatar
Written by Colin
Updated over a week ago

How do I see my previous year's contributions?

Colin avatar
Written by Colin
Updated over a week ago

How do I update an issue / make a correction on my tax forms?

Colin avatar
Written by Colin
Updated over a week ago

Where can I find the right tax forms?

You can find your tax forms right inside of your First Dollar Dashboard.
Colin avatar
Written by Colin
Updated over a week ago

How does an HSA affect filing my taxes?

Having an HSA requires you to file with a few extra forms. Easy peasy!
Colin avatar
Written by Colin
Updated over a week ago

When will I receive my tax forms?

Tax forms should be in your inbox no later than January 31st of each year.
Colin avatar
Written by Colin
Updated over a week ago

What forms do I need to complete my taxes?

What forms do you from your HSA to file your taxes?
Colin avatar
Written by Colin
Updated over a week ago

Who is ultimately responsible for my HSA?

Colin avatar
Written by Colin
Updated over a week ago

Are HSAs tax-deductible at the state level?

Colin avatar
Written by Colin
Updated over a week ago

How do I "Establish" my HSA and when is it considered established?

Colin avatar
Written by Colin
Updated over a week ago

What happens if my coverage type (individual or family) changes on my HDHP?

Colin avatar
Written by Colin
Updated over a week ago

Can non-dependent children open a separate HSA?

Colin avatar
Written by Colin
Updated over a week ago

What’s the “last month” or “full-contribution rule”?

Colin avatar
Written by Colin
Updated over a week ago

Can I have a joint-HSA with my spouse?

Colin avatar
Written by Colin
Updated over a week ago

What happens to my HSA if I get a divorce?

Colin avatar
Written by Colin
Updated over a week ago

What happens to my HSA account if I become disabled?

Colin avatar
Written by Colin
Updated over a week ago

What happens to my HSA if I declare bankruptcy?

Colin avatar
Written by Colin
Updated over a week ago

If I have an HSA and I die, what happens? How do beneficiaries work?

Colin avatar
Written by Colin
Updated over a week ago