Health Savings Account

It's a bank account that allows you to set aside funds for health expenses. To be eligible for an HSA, you must have a high-deductible health plan (HDHP).
 
Eligible contributions are tax-deductible, and you can use your HSA money tax-free to pay for qualified medical expenses for you, your spouse, and your qualified dependents. You can choose to invest some or all of your HSA money for potential growth to help pay for qualified medical expenses in retirement. If it grows, that growth is also tax-free. Plus, your HSA is not "use-it-or-lose-it"—the account belongs to you, and your contributions can compound year after year.
 
Note that while this account is called a Health Savings Account, the way it functions more closely resembles a checking account. If you are ever setting up an ACH transaction to electronically deposit into or withdraw from an HSA, you would need to select "Checking" as the type of account.

Yes. HSA money is not "use-it-or-lose-it," unlike an FSA, and your entire HSA balance carries over from year to year, forever. In general, HSAs cover a broader variety of qualified medical expenses than FSAs. Also, FSAs are generally sponsored by your employer, while your IncredibleBank personal HSA is a brokerage account owned by you. That means your HSA is always yours, even if you change employers or move to a different state.

HSAs are tax-advantaged in three ways. First, personal HSA contributions using after-tax money may be federal income tax-deductible. If you have an HSA through your employer, you can make pre-tax payroll contributions—this type of contribution saves more on taxes than tax-deductible after-tax contributions. Second, spending your HSA money on qualified medical expenses is free of federal income taxes. Third, if you invest some or all of your HSA money, any growth is also tax-free.

You're eligible to open and contribute to an HSA if:

You're covered by a high-deductible health plan on the first of the month
Your health plan also needs to conform to an out-of-pocket maximum
You're not enrolled in Medicare
You cannot be claimed as a dependent on someone else's tax return

We try to keeps fees as minimal as possible. And we never try to hide the fees we do have. You can find all of the fees and service charges on our Schedule of Fees.

Your HSA and your balance are always yours, even if you change employers or move to another state. You can contribute to your HSA—even an HSA offered by your previous employer—as long as you continue to meet eligibility requirements. Even if you become ineligible to contribute to your HSA, you can spend your HSA money tax-free for qualified medical expenses any time, including through retirement.

Your HSA is always yours, so you can still spend your HSA money on qualified medical expenses with no federal income taxes or penalties in retirement.

Retirement-related qualified medical expenses, covered by your HSA, could include:

COBRA coverage costs
Health care coverage while you’re receiving unemployment benefits
Medicare premiums other than Medicare Supplemental coverage
Qualified long-term care coverage

If you choose to use your HSA money for something other than qualified medical expenses, you will be responsible for paying federal income taxes on it and may be penalized if you’re under age 65. You’ll also still be eligible to contribute to your HSA in retirement as long as you aren’t enrolled in Medicare or covered by an ineligible health plan.

IncredibleBank will issue you a debit card that is linked to your HSA, and can be used for medical related expenses. Here is a brief list of what the funds can be used for, but the IRS published a complete list found here:
Office-visit co-payments
Health insurance deductibles
Dental expenses
Vision care (eye exams and eyeglasses)
Prescription drugs and insulin
Medicare premiums
Hearing aids
Hospital and physical therapy bills
Wheelchairs and walkers
X-rays