An HSA is a special tax-advantaged account used with a high-deductible health plan (HDHP). Distributions may be tax-free if you pay for qualified medical expenses. Ask your accountant or tax advisor to help determine if an HSA could be right for you.*

Why an HSA?

  • Pay qualified medical expenses permitted under federal tax law at any time without federal tax liability or penalty (Click here for more information on HSAs and qualifying expenses)
  • Earn interest starting with a $100 minimum average monthly balance
  • Debit card and checks provide easy access to the account for qualified medical expenses

How an HSA works.

  • You may establish an HSA if you’re covered by high-deductible health plan and have no other first-dollar coverage
  • Funds contributed to HSA are not subject to federal income tax at time of deposit
  • Funds rollover and accumulate year-to-year if not spent
  • Annual contribution limitations exist based on individual vs. family coverage and age of participant
  • Click here for detailed information on how an HSA works

*Capital Bank does not provide tax or retirement planning services. Consult a qualified advisor as needed.