Health Savings Account (HSA) at First Horizon National Corporation

A Health Savings Account (HSA) with First Horizon National Corporation is designed to help eligible individuals save, pay, and invest tax-advantaged dollars for qualified medical expenses. Combining the flexibility of a savings account with potential investment growth and distinct tax benefits, this HSA is tailored for those covered by a qualified high-deductible health plan (HDHP) who wish to take greater control of their healthcare spending, plan for future medical costs, and build a long-term healthcare nest egg.

Key Benefits

• Tax advantages: Contributions are made with pre-tax or tax-deductible dollars, earnings grow tax-deferred, and qualified withdrawals for medical expenses are tax-free.
• Long-term savings: Unused funds roll over year to year, allowing the account balance to grow over time without forfeiture.
• Flexibility and portability: The HSA belongs to you. If you change jobs, insurers, or retire, the account remains with you and continues to offer its tax benefits.
• Integrated account management: Access account statements, transaction history, and tools to manage contributions and withdrawals through First Horizon’s secure online platform and mobile app.
• Access to funds: Use the HSA debit card or submit qualified expense reimbursements to pay for eligible medical, dental, and vision care costs.

Who Is Eligible

Eligible participants are generally individuals who are enrolled in a qualified high-deductible health plan (HDHP) and meet IRS eligibility requirements. Individuals who are enrolled in other disqualifying health coverage, enrolled in Medicare, or claimed as a dependent on someone else’s tax return may not be eligible. Contribution limits and eligibility rules are subject to annual adjustments by the IRS; account holders should consult tax guidance or their benefits administrator for current details.

How the Account Works

Contributions to your HSA can be made by you, your employer, or both, with an annual contribution limit determined by federal tax law. Contributions reduce taxable income in the year they are made when not made through payroll deduction. Funds in the account can be used to pay or be reimbursed for qualified medical expenses, including copayments, prescriptions, dental care, and vision services. Withdrawals for non-qualified expenses may be subject to taxes and, in some cases, penalties. Account holders are responsible for substantiating that withdrawals are used for qualified expenses as required by tax authorities.

Account Features and Services

• Online and mobile access: View balances, track transactions, and manage distributions anytime through a secure digital platform.
• Payment options: HSA debit card for convenient purchases; reimbursement requests processed through online tools or by submitting documentation.
• Investment opportunities: When balances exceed designated thresholds, funds may be eligible to be invested in mutual funds or other investment vehicles to pursue long-term growth.
• FDIC considerations: Cash held in deposit accounts may be eligible for FDIC insurance according to applicable rules; investment portions are not FDIC insured and carry investment risk, including possible loss of principal.
• Transparent fees: An itemized schedule of account fees and investment-related costs is available so account holders can make informed decisions about using and investing their HSA funds.

Investment Options and Growth Potential

First Horizon’s HSA may offer tiered account structures that allow routine savings for near-term expenses while enabling excess balances to be allocated to investment options for long-term growth. Investment choices typically include a range of mutual funds with varying risk profiles to align with conservative to more aggressive strategies. Investing HSA funds can enhance long-term purchasing power for healthcare expenses in retirement, but it is important to recognize that investments involve market risk and returns are not guaranteed.

Tax Treatment and Retirement Planning

An HSA is widely regarded as a valuable component of retirement planning due to its triple tax advantage: pre-tax contributions, tax-free growth, and tax-free distributions for qualified medical expenses. After age 65, HSA holders may withdraw funds for non-medical purposes without the early withdrawal penalty, though such distributions would be subject to ordinary income tax if not used for qualified medical expenses. Because healthcare costs often continue into retirement, an HSA can serve as a tax-efficient vehicle to cover Medicare premiums, out-of-pocket medical expenses, and long-term care costs.

Account Administration and Support

First Horizon provides customer support services to assist with account opening, contribution management, claims and reimbursement procedures, and understanding investment choices. Educational resources and tools may be offered to help account holders estimate qualified expenses, plan contributions, and evaluate investment allocation. Account holders are encouraged to maintain records of medical expenses and consult tax professionals when necessary to ensure compliance with IRS rules.

Security and Compliance

Security of personal and financial information is a priority. First Horizon employs industry-standard security measures for online and mobile access, including encryption and multi-factor authentication where available. The HSA program is administered in accordance with applicable federal regulations, and account statements provide detailed transaction histories to support tax reporting and audits.

Why Choose an HSA at First Horizon

Choosing an HSA through First Horizon National Corporation offers a combination of practical tools, flexible funding options, and the potential for long-term growth, backed by the operational capabilities of an established financial institution. Whether you are focused on managing near-term medical expenses, building a dedicated healthcare reserve, or integrating healthcare savings into a broader retirement plan, an HSA can be an efficient and tax-advantaged solution. With online account management, payment conveniences, and investment pathways, the HSA is structured to support informed, flexible decisions about health-related spending and savings.

Final Considerations

An HSA is a powerful financial tool when used in alignment with eligibility requirements and long-term financial planning goals. Prospective account holders should review eligibility, understand contribution limits and tax implications, and consider their anticipated medical needs and investment time horizon. Careful planning and regular review can help maximize the benefits of an HSA while ensuring funds are used appropriately for qualified medical expenses.

Address Bank: Memphis, Tennessee, U.S.
Bank: First Horizon National Corporation
Headquarters: Memphis
Products: Retirement & Health
Type: Health Savings Account (HSA)