Piggy bank with a stethoscope.

Health Savings Accounts (HSA)

Maximize Your Healthcare Savings with Health Savings Accounts (HSAs)

Health Savings Accounts (HSAs) offer several compelling advantages, making them a smart choice for managing healthcare expenses. At Citizens State Bank you even earn interest on your HSA, there is no monthly service charge and no minimum balance. You get a free debit card and can order checks if that is more your style. 
By leveraging these benefits, HSAs can be an effective way to manage healthcare expenses while also enjoying significant tax advantages and long-term savings potential.

1. Tax Advantages: Contributions to an HSA are tax-deductible, reducing your taxable income. Additionally, interest and investment earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free.
Flexible Spending: Funds in an HSA can be used for a wide range of qualified medical expenses, including prescriptions, over-the-counter medications, and even some dental and vision care. This flexibility helps cover a broad spectrum of healthcare needs.

2. Portability: Unlike Flexible Spending Accounts (FSAs), HSAs are not tied to your employer. You keep your HSA even if you change jobs or retire, making it a portable savings tool.

3. Long-Term Savings: HSA funds roll over from year to year, so you don’t lose unused money at the end of the year. This feature allows you to build a substantial balance over time, which can be especially useful for future healthcare costs.

4. Retirement Benefits: After age 65, you can withdraw HSA funds for non-medical expenses without a penalty, though such withdrawals will be taxed as ordinary income. This makes HSAs a versatile tool for retirement planning as well.

5. Lower Health Insurance Premiums: HSAs are often paired with High Deductible Health Plans (HDHPs), which generally have lower premiums compared to traditional health insurance plans. This can lead to savings on your overall health insurance costs.

Overall, HSAs can be a strategic component of your benefits package, providing financial and operational advantages for both the business and its employees.

1.  Attract and Retain Talent: Offering HSAs can make your benefits package more attractive to potential employees and help retain current staff. Employees value comprehensive benefits, and HSAs can be a key differentiator in a competitive job market.

2.  Cost Control: HSAs are often paired with High Deductible Health Plans (HDHPs), which typically have lower premiums than traditional health plans. This can help businesses reduce their overall health insurance costs while still providing valuable benefits to employees.

3.  Tax Benefits: Contributions made by the employer to employees' HSAs are tax-deductible as a business expense. Additionally, employer contributions are exempt from payroll taxes, which can reduce the company’s payroll tax liability.
Increased Employee Satisfaction: HSAs offer employees a way to save for medical expenses with tax advantages, which can improve overall job satisfaction. Satisfied employees are more likely to be engaged and productive.

4.  Flexible Contribution Options: Employers have the flexibility to decide how much to contribute to employees' HSAs. This can be a strategic way to manage benefit costs while still offering valuable support to employees.

5.  Encourages Health Savings: By offering HSAs, employers encourage employees to save for their healthcare costs. This can lead to healthier, more financially secure employees who are less likely to face financial stress related to medical expenses.

6.  Administrative Simplicity: HSAs are relatively easy to administer. Once set up, the account management is straightforward, especially with many financial institutions offering robust online tools for both employers and employees.

7.  Enhances Employee Wellness Programs: HSAs can be a valuable addition to broader wellness initiatives. By promoting savings for healthcare expenses, you’re supporting overall employee wellness and financial health.

8.  Support for High Deductible Plans: Offering HSAs allows employees to effectively manage the higher deductibles associated with HDHPs, making these plans more palatable and beneficial for both the employer and employees.



Making the process of opening and managing Health Savings Accounts (HSAs) easy for employees can enhance their experience and increase participation.

 We offer:
1.  Informational sessions or workshops to explain how HSAs work, how to enroll, and how to manage the accounts effectively.
2.  Streamlined application and set up process at your place of business for a group or appointments with individual new hires. 
3.  We have dedicated  and educated employees to answer  HSA-related questions.
4.  We offer a mobile app and responsive website, allowing employees to manage their accounts conveniently from their smartphones.

Contact Tava today to set up a time she can meet with you to discuss the numerous benefits of banking with CSB and providing HSAs to your employees. 
The amount the taxpayer or another other person can contribute to the taxpayer's HSA depends on the type of HDHP coverage (individual or family) the taxpayer has, the taxpayer's age, the date the taxpayer became an eligible individual, and the date the taxpayer ceases to be an eligible individual.


Before a health savings account can be opened, a qualified High Deductible Health Plan (HDHP) must be in place to cover the individual or family. An HDHP provides health coverage for an individual or family with an affordable premium. The guidelines for an HDHP are determined by the Internal Revenue Service each year. To determine if your plan qualifies, please contact your health plan representative.

 2024 Single Plan 2024 Family Plan 2025 Single Plan 2025 Family Plan
Maximum Contribution Limit

$4150

$8300

$4300

$8550
Minimum Deductible $1600 $3200 $1650 $3300
Maximum Out-of-Pocket

$8050

$16,100

$8300

$16,600
Catch-up Contribution (55+)

$1000

$1000

$1000

$1000