A Health Savings Account (HSA) is a tax-exempt trust or custodial account established for the purpose of paying or reimbursing qualified medical expenses of you, your spouse, and your dependents. 

Contributions to an HSA are tax deductible, the earnings grow tax deferred, and distributions to pay or reimburse qualified medical expenses are tax free.


Am I Eligible for an HSA?

You are an eligible individual and may make regular HSA contributions if you are covered under a qualifying high deductible health plan (HDHP) and answer “No” to each of the following questions:

  1. Do you have other health coverage (except permitted coverage)?
  2. Are you enrolled in Medicare?
  3. Are you claimed as a dependent on another person’s tax return?

What are My Responsibilities as an HSA Owner?

Each year you are responsible for determining your eligibility and allowable annual HSA contribution and whether you have qualified medical expenses eligible for reimbursement with nontaxable HSA distributions.  You are encouraged to seek guidance from a tax or legal professional.

How Do I Establish an HSA?

If you are eligible, you can establish an HSA in much the same way you would establish an IRA.  See any of our new account representatives.  We will explain the nature of these accounts in more detail and help you complete the forms necessary to establish an HSA.

Security State Bank’s HSA

Minimum Balance to Open the Account – $50.00

Service Charge – A service charge of $2.50 will be imposed every monthly statement cycle if the balance in the account falls below $2,500.00 any day of the monthly statement cycle.

Mailed Statement Fee – A fee of $3.00 will be imposed each monthly statement cycle if the account is not successfully enrolled in E-Statements.


To learn more about Health Savings Accounts, visit our Customer Education Center for the HSA video tutorial.