Horizon's Health Savings Accounts FAQs | Horizon Bank

If you have a high-deductible health plan (HDHP), a Health Savings Account (HSA) could be a smart way to save for medical expenses while taking advantage of tax benefits. Not sure if an HSA is right for you? Here’s a clear overview.

1. What is an HSA?
An HSA is a personal savings account specifically for qualified medical expenses for you and your dependents. Both you and your employer can contribute to the account, giving you more flexibility to manage healthcare costs.

2. How can an HSA benefit me?
HSAs offer several tax advantages that make them a powerful financial tool:

• Contributions are tax-deductible.
• Contributions are often pre-tax, meaning the money comes out of your paycheck before taxes, so your healthcare dollars go further.
• Funds grow tax-free, and withdrawals are tax-free as long as they’re used for qualified medical expenses.
• Your HSA balance rolls over year to year, allowing you to save for future healthcare needs.
• Upon your death, HSA funds can be passed on to your designated beneficiary.

3. How do I use the money in an HSA?
HSAs work like a checking account. You can pay for qualified expenses with a debit card or checks, and you can monitor your balance online or at ATMs.

4. What can I spend HSA funds on?
HSA funds can be used for a wide range of healthcare-related expenses, including:

• Doctor visits, prescriptions, and dental care
• Transportation for medical care
• Long-term care insurance
• Healthcare coverage while unemployed
• Certain continuation-of-benefit coverage and health insurance after age 65

5. How much can I contribute in 2026?

• Limits: Self-only: $4,400 | Family: $8,750
• Catch-up contributions (age 55+): Add an extra $1,000

Ready to see if an HSA is right for you? Contact us today to learn more about eligibility, contribution limits, and how to make the most of your HSA.

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