Health Savings Accounts (HSA)

Start saving for tomorrow's health care expenses today

Our health savings accounts offer a triple tax advantage — and room to grow. 

What Is an HSA?

A smarter approach to saving for health care

A health savings account, or HSA, is a personal savings account that can be used to pay for medical, dental, vision, and other qualified expenses now or later in life.

  • You must be enrolled in a qualified high-deductible health plan
  • Your HSA balance rolls over from year to year, earning interest along the way
  • You can even opt to invest the funds in your account*
  • Funds can be invested if you choose an investment HSA*
Working through hospital bills
Triple the tax benefits

Money goes in tax-free

Most employers offer a payroll deduction through a Section 125 Cafeteria Plan, and your contribution can be deposited into your HSA before taxes are applied to your paycheck, making your savings immediate. You can also contribute to your HSA post-tax and claim the deduction when filing your annual taxes.

Money grows tax-free

The interest you earn on the money in your health savings account is accumulated on a tax-free basis. And, unlike most savings accounts, the interest earned on HSA funds is not considered taxable income when the money is used to pay for eligible medical expenses.

Money comes out tax-free

Eligible health care purchases can be made tax-free with your HSA. You can pay for these expenses directly from your HSA, whether it's through your benefits debit card, ACH, online bill pay, or by reimbursing yourself with HSA funds for out-of-pocket purchases.

Contribution Limits

Health savings accounts

Health savings account (HSA)

Year Family
Coverage
Individual
Coverage
Catch-Up for
Those Age 55+
2019 $7,000 $3,500 $1,000
2020 $7,100 $3,550 $1,000

 

Frequently Asked Questions

Why can I not withdraw more than six times a month?

Regulation D (Reg D) is a Federal Reserve Board rule that puts a limit of six transactions per month on certain transfers and withdrawals from your savings or money market account.  If you go over the limit, UBT can charge you a fee and/or close your account or restrict transactions.   Reg D is the federal government's way of encouraging people to use saving accounts as they are intended---to save money---and ensures that banks have the proper amount of reserves on hand.

Which transactions are limited under Reg D?

  • Online transfers from savings or Money Market accounts to a different account either at the same institution or a different one
  • Transfers processed over the phone
  • Automatic or preauthorized transfers, such as bill payments or any other recurring transfers
  • Overdraft transfers from your savings account to your checking account
  • Transfers made by check or debit card.

Which transactions don't count under the limit?

  • Withdrawals or transfers made at ATMs
  • Transactions made in person at a bank

Quick tips on avoiding Reg D fees/violations

  • Make transfers count; do fewer transfers with larger sums of money
  • Link any automatic transfers, such as bill payments, to your checking account instead of savings
  • If you hit the transaction limit and need to make another transfer or withdrawal from your savings account, do it at an ATM or bank.  Even if the bank charges a fee, you won't risk your account being closed.
  • If your checking account has overdraft protection linked to a savings account try to avoid overdrafts.  Set up low-balance alerts on your checking account.

At Union Bank, we notify our customers by letter each time the violate the regulation in hopes they will explore other ways to avoid going over the transaction restriction but if this is not done our only option is to restrict the transfers and/or close the acct.

For more information regarding Regulation D, please click HERE to view a document from the Federal Reserve regarding this regulation. The information as it relates to Savings accounts begins on page 3.

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*Investment products: Not FDIC Insured — No Bank Guarantee — May Lose Value.