Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-deductible transaction account that allows you to pay for qualified medical expenses, including those not covered by your insurance, and to save money for future health care costs. The account is the simple and smart accompaniment to a high-deductible insurance health plan (HDHP).

An HSA puts you in control of where and how your health care dollars are spent. Any unused funds rollover from year to year. Read more about HSAs below.

Steps to opening an HSA 

Set-Up Your Account

  1. Download and print a copy of the disclosures listed below for your records:

  2. After clicking the Open An Account button below, please print and complete the application. You will need to sign your completed application in front of a Notary if you are not an existing 1st Source checking account client.
  3. If you will have an authorized signer on your account, please complete the Authorized Signer section on the application.
  4. Include a check for your initial deposit payable to 1st Source Bank (or you may wait for employer funding).
  5. Mail the forms and your deposit to:

    1st Source Bank
    Online Banking Department
    205 W. Jefferson Blvd., Suite 100
    South Bend, IN 46601

  6. After we receive your notarized documents and opening deposit, your HSA account will be opened and account materials will be mailed to you.

The Application

To start your application, please click the button below to indicate you are at least 18 years old, and you have read and agree with the disclosures and agreements listed above.
 
Open an Account

About HSAs

HSA Checking features and benefits include:
  • Funds in the account can be spent on qualified medical expenses*
  • Earn interest on your balances
  • Free online banking and e-statements - go paperless!
  • HSA Resource Plus® debit card
  • Plus, a second free HSA debit card is available upon request for an authorized signer
  • Checks are available to order
  • Deposits, up to the maximum annual contribution, made for qualified medical expenses are tax-deductible.
  • Withdrawals used for qualified medical expenses are tax-free
  • The interest earned is tax-deferred
  • Your unspent funds carry over from year-to-year
  • Your employer or insurance carrier may change, but you may always keep your funds at 1st Source.

*Qualified Medical Expenses are defined by Federal Employees Health Benefits law and Section 213 of the IRS Code. Information can be found here.

For additional details and guidance regarding HSAs please refer to IRS.gov and be sure to consult your tax advisor.

For additional tips and reminders regarding an HSA refer to this page.

To open an HSA Checking account, you must be enrolled in a High-Deductible Health Plan. The rules that define HDHPs can be complicated. Check with your health insurance provider to determine if your health plan coverage is HSA-compatible. 
 
 
Health Savings Account Help
Health savings accounts (HSAs) are tax-favored savings arrangements for individuals and families covered by high deductible health insurance plans. HSAs were created by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, and became available January 1, 2004.
 
HSAs allow for tax-deductible contributions and tax-free distributions if distributed amounts are used to pay for qualified medical expenses. Qualified medical expenses include expenses incurred by spouses and dependents even if they are not eligible for an HSA. Although employers may contribute to an employee’s HSA, each HSA is owned and controlled by the individual, not the employer.
 
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Any eligible individual may establish an HSA. Eligibility is determined on a monthly basis. To be eligible, an individual must meet all of the following requirements.
  • Covered under a high deductible health plan (HDHP) on the first day of the month
  • Generally not covered by any health plan that is not an HDHP (exceptions exist for coverage that is not part of an HDHP for accidents, disability, dental care, vision care, long-term care, or permitted insurance)
  • Not enrolled in Medicare
  • Not able to be claimed as a dependent on another person’s tax return
The owner of an HSA is called the "HSA owner."
 
NOTE: Permitted insurance is insurance under which substantially all of the coverage provided relates to liabilities incurred under workers’ compensation laws, tort liabilities, liabilities relating to ownership or use of property (e.g., automobile insurance), insurance for a specified disease, or illness and insurance that provides a fixed payment for hospitalization.
 
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A health plan is an HDHP if the plan satisfies the following annual deductible and out-of-pocket expense requirements for self-only or family coverage.
 
Self-only coverage: Annual deductible of at least $1,400 for the year 2022 and an out-of-pocket expense (deductibles, co-payments, and other amounts, but not premiums) cap of $7,050 for the year 2022.
 
Family coverage: Family Coverage: Annual deductible of at least $2,800 for 2022, and an out-of-pocket expense (deductibles, co-payments, and other amounts, but not premiums) cap of $14,100 for the year 2022.
 
Family coverage with individual deductibles: Family coverage with individual deductibles: In cases where family coverage has individual deductibles, the plan is considered an HDHP if no amounts are payable from the health plan until the family has incurred covered medical expenses in excess of the minimum annual deductible ($2,800 for 2022), and the plan has an out-of-pocket expense cap of $14,100 for the year 2022.
 
NOTE: These amounts may be increased for annual cost-of-living adjustments.
 
EXAMPLE: Which plan is considered an HDHP?
 
Plan A: Steve Johnson purchases health insurance for himself and his family for 2022. His plan has a $5,000 family deductible with a $1,000 individual deductible.
 
Plan B: Steve Johnson purchases health insurance for himself and his family for 2022. His plan has a $5,000 family deductible with a $2,800 individual deductible.
 
Answer: Plan A provides payment of covered medical expenses for any member of Steve’s family if the member has incurred covered medical expenses during the year in excess of $1,000, even if the family has not incurred covered medical expenses in excess of $2,800. Thus, benefits are potentially available under the plan even if the family’s covered medical expenses do not exceed $2,800. Because Plan A provides family coverage with an annual deductible of less than $2,800, the plan is not an HDHP.
 
Plan B satisfies the requirements for an HDHP because the plan only provides payment for covered medical expenses if any member of Steve’s family incurs covered medical expenses during the year in excess of $2,800.
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Yes. A network plan is a plan that generally provides more favorable benefits for services provided by its network of providers than for services provided outside the network. When determining if a plan is an HDHP, the out-of-pocket expense limits for services provided outside of a network of preferred providers are disregarded. In other words, if a plan otherwise meets the requirements of an HDHP, but the out-of-pocket expense limits for out-of-network services exceed the maximum annual out-of-pocket expense limits allowed for an HDHP, the plan will still be considered an HDHP.

EXAMPLE:  Is the plan described below an HDHP?

Sarah has self-only coverage under her health plan for 2022. She may access services from either a network of preferred providers, or she may choose to receive services from out-of-network providers. When she uses in-network providers, her health plan has a $1,400 deductible and a $8,000 out-of-pocket expense limit. Alternatively, when she accesses services from out-of-network providers, her deductible is $2,000, and her out-of-pocket expense limit is $12,000.

Answer:  Yes. Sarah’s plan is an HDHP because it meets the deductible and out-of-pocket expense restrictions for self-only coverage when she uses network providers. Out-of-network provider expenses are disregarded when determining if an individual has an HDHP.

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A plan will still qualify as an HDHP even though it may not have a deductible (or has only a small deductible) for preventive care. Except for preventive care, in order to be an HDHP, a plan may not provide benefits for any year until the deductible for that year is met.
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More Health Savings Account Help