Health Savings Account (HSA)

Provider: HSA Bank
hsabank.com
800-357-6246

Establishing your Health Savings Account

Your HSA becomes effective on the first day of the month following your hire or benefits-eligibility date. The only exception is if you are hired on the first of the month, in which case your HSA starts the same day as your other benefits.

Federal law (USA PATRIOT Act) requires all financial institutions to verify the identity of anyone opening a bank account, including an HSA. This process is called the Customer Identification Program (CIP). HSA Bank will attempt to verify your identity using the information provided during enrollment—name, date of birth, Social Security number, and residential address (P.O. boxes are not permitted). They compare this information against government and public record databases, as required by law.

If they cannot verify your identity automatically, HSA Bank will contact you directly for additional documentation. Until verification is complete, your account and funds may remain in a pending or “frozen” status. If you do not provide the requested documents by the deadline, you will fail CIP, your HSA will be closed, your own contributions will be refunded, and any employer contributions will be forfeited.

The Fine Print About HSAs²

If you’re not eligible for the HSA, you can still enroll in the HDHP, but you will not receive the company HSA contribution.
You cannot have a Health Care FSA and an HSA at the same time. Note: If your spouse is enrolled in a general purpose Health Care FSA through their employer, you are automatically eligible to benefit from that FSA, which makes you NOT eligible for the HSA.
You cannot be enrolled in or receiving Medicare (Part A or B), TRICARE, or VA benefits.³
You cannot be claimed as a dependent on another person’s tax return (except your spouse’s).
You must have a valid Social Security or tax ID number and physical U.S. address to establish your HSA in UKG Pro.

¹ Not exempt from California or New Jersey state income tax. Certain states tax investment earnings. Check with your tax advisor.

² Per IRS Publication 969.

³ If you or your spouse has a disability rating and is receiving VA hospital care and medical services, you are eligible to make HSA contributions.

Using Your Health Savings Account

When you enroll in the HDHP for the first time, HSA Bank (the account administrator) will send you a Visa debit card. Use it to pay for eligible expenses tax-free¹. You can also make online transfers or buy checks to pay health care bills or reimburse yourself from your HSA.

What You Can Use It For

You can use your HSA balance to pay for your and your family members’ health care expenses. They don’t have to be enrolled in the HDHP, but you do need to be able to claim them as tax dependents.
Eligible expenses typically include medical, dental, and vision deductibles, copays, coinsurance, and other out-of-pocket costs.
If you can afford to pay some expenses out of pocket—and let your HSA money grow—you’ll have it to use for future medical expenses, even in retirement. By some estimates, couples will need approximately $300,000 to cover medical expenses in retirement.
To view a detailed description of all HSA-eligible expenses, see Publication 502 at irs.gov.

HSABank.com for Account Info

View your account balance, transaction history, and statement, and track your expenses online or with the HSA Bank mobile app. Shortly after enrollment, new HDHP members will receive detailed information from HSA Bank.

View more resources, tips, savings calculators, and information at the HSA Bank Learning Center.

¹ Not exempt from California or New Jersey state income tax. Certain states tax investment earnings. Check with your tax advisor.

Save 5 Ways with an HSA

1. Contributions.

The company will contribute to your HSA each pay period if you are enrolled in the HDHP and maintain an open HSA. You can contribute pre-tax dollars, up to the IRS max, to use for eligible expenses.

Coverage Type	2026 IRS Max Contribution	2026 Company Contribution*	Age 55+ Catch-Up Contribution
Employee Only	$4,400	$700 year	Additional $1,000
Family	$8,750	$1,200 year	Additional $1,000

* The annual company contribution will be funded on a pay period basis throughout the year.

Remember: Health Savings Accounts (HSA) have annual IRS contribution limits. If enrolling in the HSA mid-year, consider how much you have already contributed (your and a company’s contribution) in the current calendar year when making contribution elections. If you over contribute, you may be required to pay taxes on the excess amount. Speak to a tax advisor with any questions.

2. Flexibility: It works for savers and spenders.

“Savings” is the Health Savings Account’s middle name. There’s no use-it-or-lose-it rule, so the money will be available whenever you need it—next month or next year. But if you need the money for health care expenses today, your HSA has you covered.

3. Invest. You can invest your balance.

Every dollar you invest in mutual funds and other investments has the potential to earn more. Even better, any investment earnings are tax-free.¹

4. Future Savings. An HSA is like a 401(k) for health care and helps you prepare for retirement.

Some research says health care costs in retirement could top $300,000. Use your HSA savings to cover these costs with your pre-tax dollars, and use our 401(k) for other expenses. After age 65, in addition to health care expenses, you also have the flexibility to use your HSA funds for other expenses and simply pay income taxes at that time—similar to a 401(k)!