Health Savings Account (HSA) — Texas Capital Bank

A Health Savings Account (HSA) with Texas Capital Bank is a tax-advantaged, consumer-driven account designed to help eligible individuals save and pay for qualified medical expenses. HSAs combine the tax benefits of deductible contributions, tax-free growth, and tax-free distributions for qualified healthcare costs with the convenience of debit access and online account management. This HSA is structured to complement high-deductible health plans (HDHPs), empowering account holders to plan for short-term medical needs and long-term healthcare spending in a flexible, portable way.

Key Features

• Triple tax advantage: pre-tax or tax-deductible contributions, tax-deferred earnings, and tax-free distributions for qualified medical expenses.
• Contributions can come from the account holder, an employer, or any other person on behalf of the account holder.
• Funds roll over year to year — there is no “use-it-or-lose-it” rule.
• Account portability: the HSA stays with the account holder even when changing jobs, insurance plans, or geographic locations.
• Eligible for investment options once a minimum cash balance is met, enabling long-term growth for future healthcare costs.
• Convenient access to funds via debit card and online bill payment for eligible expenses.

Eligibility

To contribute to an HSA, individuals must be enrolled in a qualified high-deductible health plan (HDHP) and meet IRS eligibility rules. Generally, account holders must not be covered by a non-HDHP health plan, must not be enrolled in Medicare, and cannot be claimed as a dependent on another person’s tax return. Texas Capital Bank’s HSA offering is tailored for individuals and families who meet these federal requirements and wish to maximize tax-advantaged savings for healthcare.

Contributions and Limits

Annual contribution limits are set by the IRS and may change each tax year. Contributions to your Texas Capital Bank HSA can be made by you or by others on your behalf, including employers. Catch-up contributions are available for eligible account holders age 55 and older. Contributions are reported on tax forms as required and can be deducted on your federal income tax return if they are made independently of payroll deductions.

Qualified Medical Expenses

HSA funds can be used for a wide range of qualified medical expenses, including but not limited to deductible and copayment amounts, prescriptions, dental and vision care, certain medical equipment, and other IRS-defined medical costs. Non-qualified withdrawals are subject to income tax and, in many cases, an additional penalty if taken before age 65. It is the account holder’s responsibility to retain records and receipts for HSA distributions used to pay for qualified expenses.

Withdrawals, Penalties, and Post-65 Use

Withdrawals for qualified medical expenses are tax-free. Non-qualified withdrawals before age 65 are subject to ordinary income tax and an additional penalty. After age 65, distributions for non-medical expenses are treated as taxable income but are not subject to the additional penalty, providing flexibility similar to other retirement savings accounts.

Investing Your HSA Funds

Texas Capital Bank’s HSA provides the opportunity to invest funds in select mutual funds or other investment options once a minimum cash balance requirement is met. Investing HSA funds can help account holders build a long-term healthcare nest egg, taking advantage of tax-deferred growth. Investment options may vary and are subject to account terms, minimums, and market risk. Investment selections are made by the account holder and are not guaranteed.

Account Management and Digital Tools

Manage your HSA online with secure account access, view transactions, submit documentation for distributions, and track contributions and balances. Texas Capital Bank offers electronic statements, mobile access, and bill-pay features for qualified medical providers. Debit card access simplifies everyday payments for eligible expenses, while online tools help categorize and document transactions for tax purposes.

Fees and Minimums

Account fees and minimum balance requirements may apply, including maintenance fees, transaction fees, or investment-related fees. Fee schedules are provided at account opening and are subject to change. Texans who intend to use the HSA primarily for long-term accumulation should review fee structures and minimums to ensure the account meets their financial planning needs.

Privacy and Security

Texas Capital Bank employs industry-standard security practices to protect personal and financial information. Access to the HSA is secured through authentication measures, and electronic communications are protected by encryption and secure login protocols. Account holders are encouraged to protect their account credentials and to regularly review account activity for unauthorized transactions.

Employer and Payroll Integration

Employers can facilitate HSA contributions through payroll deductions, enabling pre-tax funding that can maximize tax benefits for employees. Texas Capital Bank supports employer-sponsored HSA programs, offering administrative tools to help manage contributions, reporting, and employee enrollment. Employers can offer HSAs as part of a benefits package to support workforce health and financial wellness.

Rollover, Transfers, and Portability

HSAs are portable accounts. You can roll over or transfer balances from other HSAs or receive trustee-to-trustee transfers without tax consequences when handled properly. This portability ensures continuity of savings when changing jobs, insurance plans, or moving residence.

Who Benefits Most

• Individuals and families with high-deductible health plans seeking tax-advantaged savings for current and future medical costs.
• Those who want long-term tax-deferred growth for healthcare expenses in retirement.
• Employers looking to offer a flexible employee benefit that promotes savings and financial responsibility for healthcare spending.

Frequently Considered Questions

How are HSA funds coordinated with other benefits? HSA funds work alongside an HDHP and may complement Flexible Spending Accounts, Health Reimbursement Arrangements, or other employer-sponsored benefits depending on plan design. What records should I keep? Maintain receipts and documentation for all qualified medical expenses paid from your HSA to substantiate tax-free distributions. Can I contribute if I have other coverage? Certain types of coverage may disqualify you from making HSA contributions; consult plan eligibility rules before contributing.

Summary

Texas Capital Bank’s Health Savings Account provides a flexible, tax-advantaged way to save for qualified medical expenses while offering tools for account management, investment growth potential, and portability. With careful planning and recordkeeping, an HSA can be a powerful component of both short-term healthcare budgeting and long-term financial planning for medical costs in retirement.

Address Bank: Dallas, Texas, U.S.
Bank: Texas Capital Bank
Headquarters: Dallas
Products: Retirement & Health
Type: Health Savings Account (HSA)