Health Savings Account (HSA) — Fifth Third Bank

A Health Savings Account (HSA) at Fifth Third Bank is a flexible, tax-advantaged account designed to help individuals and families with a high-deductible health plan (HDHP) save, pay for, and invest in qualified medical expenses today and in the future. Combining tax savings, long-term growth potential, and everyday convenience, an HSA from Fifth Third Bank can be a powerful tool for managing healthcare costs now while building a dedicated pool of funds for healthcare needs in retirement.

Key Benefits

• Triple tax advantage: Contributions are tax-deductible (or pre-tax when made through payroll), earnings grow tax-deferred, and qualified distributions for medical expenses are tax-free.
• Long-term savings and investment potential: Unused balances roll over year to year and can be invested to pursue long-term growth, making an HSA a valuable complement to retirement planning.
• Control and flexibility: Account holders decide how and when to use funds for eligible healthcare costs — from routine copays and prescriptions to dental and vision expenses.
• Portability: The account stays with you if you change employers or health plans, so you maintain access to your savings regardless of life changes.
• Convenient access: Use debit card access, online and mobile banking tools, and account statements to manage contributions, payments, and investments easily.

Who Is Eligible

To contribute to an HSA, you must be enrolled in a qualifying high-deductible health plan (HDHP) and meet IRS eligibility rules, including not being covered by disqualifying health coverage, not being enrolled in Medicare, and not being claimed as a dependent on another person’s tax return. Eligibility and contribution limits are set by federal guidelines and may change annually; account holders should consult current guidance when planning contributions.

Contributions and Funding

An HSA can be funded through pre-tax payroll deductions, direct contributions, and employer contributions. Many employers offer coordinated payroll contributions that reduce taxable income. Contributions may be made throughout the year up to the annual limit determined by federal rules. Contributions are flexible — you can add funds as your needs and savings goals evolve.

Investing HSA Funds

Fifth Third Bank’s HSA is structured to support both cash holdings for near-term medical expenses and options for investing funds to pursue long-term growth. Once your account balance meets any minimum investment threshold, you may be able to transfer a portion of your balance into available investment options. Investing HSA dollars provides the potential for compound growth, helping to build a larger pool of funds for future healthcare and retirement expenses.

Qualified vs. Non‑Qualified Distributions

Funds withdrawn for qualified medical expenses are tax-free when you keep records and use the money for eligible costs as defined by federal rules. Examples include medical, dental, and vision care services and eligible prescription medications. Withdrawals for non-qualified expenses are subject to income tax and, if taken before age 65, may also incur a penalty. After age 65, non-qualified distributions are taxed as ordinary income but are not subject to the additional penalty.

Everyday Features and Account Management

• Debit card access: Use your HSA debit card to pay for qualified healthcare expenses directly at point of sale.
• Online and mobile banking: Monitor balances, submit and track claims, review transaction history, and manage investments through secure online and mobile platforms.
• Statements and recordkeeping: Regular account statements help you track contributions and distributions; maintaining receipts and documentation for medical expenses is recommended for tax purposes.
• Beneficiary designation: Name a beneficiary for your HSA to ensure a smooth transfer of assets in accordance with your wishes and applicable rules.

Coordination with Employers and Other Coverage

Employers may offer HSA-compatible HDHPs and may contribute to employee HSAs as part of benefit packages. HSA funds are individual accounts but employers can make contributions on behalf of employees. Coordination with other health coverage, such as flexible spending accounts (FSAs), requires attention to eligibility rules; certain types of coverage can affect HSA eligibility. Enrollment in Medicare or participation in certain government programs typically ends eligibility to make new HSA contributions, though funds already in the HSA remain available for qualified expenses.

Security and Protections

Fifth Third Bank’s HSA combines account safeguards and privacy practices to protect your funds and information. FDIC insurance typically applies to certain deposit balances held in the HSA cash portion, providing protection up to applicable limits. Online security measures such as multi-factor authentication and encryption help secure account access and transactions.

Smart Ways to Use an HSA

• Build an emergency healthcare reserve: Keep a cash balance for predictable near-term expenses while investing excess funds for long-term growth.
• Maximize tax benefits: Contribute strategically each year to take full advantage of available tax advantages and employer contributions if offered.
• Save receipts and document expenses: Proper documentation makes it easy to substantiate qualified distributions in case of tax review.
• Coordinate with retirement planning: Consider HSAs as a complementary vehicle for medical and retirement spending given their tax advantages and rollover feature.

How to Get Started

Opening an HSA typically involves confirming HDHP eligibility, completing an application, choosing contribution methods, and setting up account access for online and mobile banking. Review plan terms, potential fees, and any investment options before opening an account to ensure the HSA aligns with your healthcare and financial goals.

Closing Thoughts

A Health Savings Account at Fifth Third Bank offers a practical and tax-efficient way to pay for current healthcare costs while building savings for future needs. With flexibility, portability, and the potential for investment growth, an HSA is a strategic component of a responsible healthcare and retirement plan. Whether you’re covering routine medical costs, saving for unexpected expenses, or planning for healthcare in retirement, an HSA can help you manage costs and preserve financial well-being over the long term.