CIBC Bank USA is pleased to offer a checking account, HSA Checking, that serves as a Health Savings Account (HSA) for eligible individuals. An HSA allows you to save for current and future medical expenses not covered by health insurance plans. Eligible individuals with high-deductible health plans can utilize HSAs to pay for qualified out-of-pocket medical expenses with pretax dollars1.
With HSA Checking you can earn a higher interest rate with a higher monthly account balance. Other benefits include:
- The potential for tax-exempt contributions and interest1
- The potential for tax-free account balance growth1
- No annual fee
- No setup fee
- Balance carries over from year to year
- First check order free2
- Free check images on monthly statements
- Access funds with special HSA checks, debit card or online through CIBC Netbanking
Visit the HSA Checking page for detailed product information.
Read on to learn more about HSAs and to find out if it’s right for you.
Who can have an HSA?
To qualify for an HSA, the account owner must:
- Have coverage under an HSA-qualified high-deductible health plan on the first day of any month
- Not be covered by any other health plan that is not a high-deductible health plan (except in the case of plans providing certain types of limited coverage)
- Not be enrolled in Medicare
- Not be claimed as a dependent on someone else’s tax return
What is a high-deductible health plan?
A high-deductible health plan is a health insurance plan with lower premiums and higher deductibles than a traditional health plan. An HSA helps pay for expenses not covered by certain high-deductible insurance policies. Before opening an HSA, please consult with your employer or insurance provider to confirm HSA eligibility.
For 2020, to qualify for an HSA, a high-deductible health plan must have a deductible of at least $1,400 for self-only coverage, and $2,800 for family coverage. Maximum out-of-pocket expenses under the plan cannot exceed $6,900 for self-only coverage, and $13,800 for family coverage.
Are there maximum HSA annual contributions?
Account owners can make a contribution to their HSA each year they are eligible. For 2020, the contribution maximum is $3,550 for self-only coverage, and $7,100 for family coverage. Individuals age 55 or older may be eligible to make a catch-up contribution1.
How is an HSA funded?
An individual account owner, the account owner’s employer, or both may contribute to an HSA. A family member also may contribute to an HSA. An HSA can be funded at once or throughout the course of the year up to IRS contribution limits. Contributions by an individual account holder may be tax deductible.
Contributions to an HSA by an employer may be excluded from an HSA account holder’s gross income. Family members may also make contributions on behalf of an eligible individual1.
What are the benefits of an HSA?
- Security – helps to protect against high deductibles and unexpected medical expenses not covered by qualifying high-deductible health plans
- Affordability – high-deductible insurance policies generally have lower premiums than other types of insurance policies
- Flexibility – funds can be used to pay for medical expenses now or in the future, including health insurance or medical expenses if unemployed; medical expenses after retirement (before Medicare); out-of-pocket expenses when covered by Medicare; and long-term care expenses and insurance.
- Savings – grows with earned interest
- Control – account owner decides how much to save and when to use
- Ownership – funds remain in the account and roll over each year
- Tax Savings – eligible contributions are tax deductible, the account earns interest tax free and there is no tax on withdrawals for qualified medical expenses1
How can I open an HSA Checking account at CIBC Bank USA?
To learn more or open an HSA Checking account, stop by any of our banking center locations or call our customer service line at (877) 448-6500.