Health Savings Account (HSA)
by UMB Bank
A health savings account (HSA), paired with a qualified high deductible health plan (HDHP), is a smart tool that can help you save for future healthcare expenses and manage your day-to-day medical costs. Some people use their HSAs to pay healthcare bills as they come in, while others prefer to save for future needs. Because funds in your HSA never expire, you have an opportunity to build your balance over time.
Benefits of an HSA
HSA provides a Triple Tax Advantage:
1. Money contributed to your HSA is not taxed.
2. Interest and any investment earnings grow tax-free.
3. Withdrawals are tax-free for qualified medical expenses.
Frequently Asked Questions
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1
What can I use my HSA for?
Determining what you can use your HSA money for can be tricky. UMB Bank has clear guidelines for appropriate expenses, and they may include more options than you’d expect! Click here for a list of qualifying expenses:
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2
How do I pay with my HSA?
2026 Contributions Information
| HSA Contribution Limit | Grace Contribution Amount |
|---|---|
| Self Only: $4,400 | $750 ($28.84/paycheck) |
| Family: $8,750 | $1,500 ($57.69/paycheck) |
| Catch-up (age 55+): $1,000 | $0 |
Investment Opportunity: HSA Saver
Did you know you can invest a portion of your HSA savings? The UMB HSA SAVER provides investment options to help you reach your financial goals. Once you reach $1,000 in your HSA, additional funds can be rolled into an investment account.
IMPORTANT REMINDERS
- Keep receipts for all HSA purchases in case of IRS audit.
- Withdrawals for non-qualified expenses are subject to income tax and a 20% penalty (unless age 65+ or disabled).
- You can change your HSA contribution amount at any time during the year, as long as your total contributions do not exceed the annual IRS limit.
- You’ll receive tax forms (Form 1099-SA and 5498-SA) annually for tax filing.