What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a special-purpose savings account designed to help you pay for eligible medical costs while enjoying unique tax benefits. Paired with a qualifying high-deductible health plan (HDHP), an HSA at BankUnited gives you a flexible, secure place to save money for current and future healthcare needs. Funds you contribute grow tax-free, distributions for qualified medical expenses are tax-free, and the account remains your asset even if you change jobs, health plans, or move to a different state.

Why choose an HSA at BankUnited?

BankUnited’s HSA combines the convenience and reliability of a trusted financial institution with tools and features designed to help you manage healthcare costs effectively. Whether you’re building an emergency cushion for medical expenses, planning for retirement healthcare needs, or looking for tax-efficient savings opportunities, an HSA provides a powerful, triple-tax-advantaged vehicle.

• Triple tax advantage: Contributions may be tax-deductible, earnings grow tax-deferred, and qualified withdrawals are tax-free.
• Account ownership: You own the account — funds stay with you for life, even if you change employers or insurance plans.
• Flexible spending: Use HSA funds for a wide range of qualified medical expenses, including deductibles, prescriptions, vision and dental care.
• Long-term savings: Unused funds roll over year to year — there’s no “use it or lose it” rule.
• Convenient management: Manage your HSA online with easy access to balances, contributions, transaction history, and statements.

Key features and benefits

An HSA at BankUnited is designed to fit modern financial lives. The account offers practical features for day-to-day access and long-term planning.

• Easy contributions: Contribute through payroll deductions if your employer offers that option, or make direct contributions to the account. Annual contribution limits are set by the IRS and may vary by year and by whether you have individual or family coverage.
• Investment options: If you prefer to grow your balance over time, certain HSA accounts may offer investment choices to potentially increase returns on funds not needed for immediate expenses. Investment availability and options may vary.
• Debit access: Use your HSA debit card to pay providers directly or reimburse yourself for qualified expenses. Track purchases and receipts easily via online account tools.
• Portability: Your HSA stays with you — even if you change employers, move, or switch insurance plans. This portability makes the HSA a long-term financial tool.
• Security and privacy: BankUnited employs industry-standard security measures to protect your account information and transactions. Online and mobile banking features include encryption and secure authentication for peace of mind.

How an HSA works — simple steps

1. Enroll in a qualifying HDHP: To open and contribute to an HSA, you must be covered by a high-deductible health plan that meets IRS requirements.
2. Open your account: Set up your HSA with BankUnited. Choose direct contributions or payroll deduction if offered by your employer.
3. Contribute regularly: Add funds throughout the year up to the annual limit. Contributions can be made by you, your employer, or both.
4. Use funds for qualified expenses: Pay for eligible medical costs tax-free, or let funds accumulate for future needs.
5. Grow your savings: Consider investing a portion of your balance for potential long-term growth once you have a comfortable cash cushion for near-term costs.

Who is eligible?

Eligibility hinges on having a qualifying high-deductible health plan and meeting IRS guidelines. Generally, you are eligible if:

• You are enrolled in an HDHP that meets annual deductible and out-of-pocket limits.
• You are not covered by another non-qualified health plan.
• You are not enrolled in Medicare.
• You cannot be claimed as a dependent on someone else’s tax return.

Specific eligibility rules and contribution limits are set by tax authorities and may change annually. Review the current rules before making decisions about contributions and withdrawals.

Qualified expenses

HSA funds may be used for a wide range of qualified medical expenses, including but not limited to:

• Doctor visits, hospital services, and inpatient care
• Prescription medications and some over-the-counter medications when allowed
• Dental and vision care, including exams, cleanings, glasses, and contacts
• Medical equipment, diagnostic tests, and long-term care services when eligible

Non-qualified distributions may be subject to taxes and penalties. Keep receipts and documentation to substantiate any HSA withdrawals for qualified expenses.

Planning for the future

An HSA is a powerful savings vehicle not only for immediate medical needs but also for long-term financial planning. Because unused funds roll over and can be invested, the account can serve as a supplemental retirement savings source specifically earmarked for healthcare expenses in later life. After age 65, withdrawals for non-medical purposes are treated similarly to traditional retirement accounts (subject to ordinary income tax but without the early withdrawal penalty).

Security, support, and account management

BankUnited provides secure online and mobile access to manage your HSA, including balance monitoring, transaction histories, and downloadable statements for tax reporting. Customer support teams are available to help with account setup, contribution questions, and understanding qualified expenses. Always retain documentation of medical expenses and HSA transactions for tax records.

Frequently asked considerations

• Can I contribute if I have other coverage? Secondary or specific types of insurance may affect eligibility. Confirm whether your other coverage disqualifies you before contributing.
• What happens if I change plans? Your HSA funds remain your property. You may continue to use them for qualified expenses even if you switch to a different health plan, subject to eligibility rules for future contributions.
• How do investments work? Investment options and minimum balances may apply. Consider your time horizon, risk tolerance, and need for immediate liquidity before investing HSA funds.
• How are HSA funds taxed? Qualified distributions are tax-free; non-qualified distributions may be taxable and could incur penalties if taken before certain ages or conditions.