Stay prepared with a Health Savings Account.

Health insurance can be expensive. And if you get sick or hurt, you could get stuck with a bill before you reach your annual deductible (double ouch). Don’t have money set aside for medical bills? A Health Savings Account (HSA) helps you save for the cost of future bumps and bruises. 

Open a Health Savings Account

How Does a HSA Work? 

If you’re enrolled in a high-deductible health insurance plan, a HSA lets you (or anyone, including your employer) make contributions (up to annual IRS limits) to pay for things like medical, dental and vision care. The money you contribute is yours, even if you change jobs. And your balance carries forward every year. As long as you follow the IRS guidelines1, a HSA is a great way to save for healthcare costs. 

Every HSA includes:

  • Tax-deductible contributions
  • Tax-deferred earnings
  • Tax-free distributions
  • Quick, easy access to your HSA funds

What’s Offered With Liberty Bank’s HSA? 

There’s no minimum balance to open a HSA account with us. You can make contributions at any of our Connecticut locations, or through your employer via payroll deduction. You’ll get a Liberty Bank HSA Debit MasterCard® to pay for your medical expenses at your doctor’s office or pharmacy.

Here’s what makes Liberty Bank’s HSA different:

  • Competitive interest rates
  • No annual or monthly fee
  • Monthly statements
  • Free online banking, bill pay and mobile banking
  • Free online banking and access to Money Manager – track all your finances, even those at other banks


Opening a Health Savings Account with Liberty Bank

If you’re opening an account for yourself, simply open online or find a location.

If you're thinking about offering HSAs for your employees, call our HSA Product Manager Carla Abate at (203) 575-6975.



Frequently Asked Questions

We hear a lot of questions about HSAs. Here are answers to some frequently asked questions that’ll help you better understand how they work. 

Remember withdrawals for eligible medical expenses are tax-free and contributions are tax deductible (consult a tax accountant for specific tax questions).

Contributions

How do I make contributions?

You may make a HSA contribution by visiting any Liberty Bank branch. If you would like your employer to make contributions via payroll deduction, please supply your payroll department with your HSA account number and Liberty Bank’s routing number: 211170282.

How much can I contribute? 

For details and updated limits, please review the IRS Publication 969 (PDF). 

Can I contribute after I enroll in Medicare?

No. Individuals who enroll in Medicare are no longer eligible to make HSA contributions. However, if you are age 65 or older and not enrolled in Medicare, you can make contributions up until the month you enroll for Medicare.

Can I transfer funds from another HSA account into my HSA? 

Yes. You may directly transfer all or a portion of another HSA into your new one. The direct transfer of assets from one HSA to another is not subject to the annual contribution limits, and there is no limit on the number of direct transfers you may make during any year.

Distributions

What are the different ways to pay for medical expenses with my HSA funds?

You can make payments at the pharmacy, at your doctor’s office or upon receiving a medical bill the following ways:

 - With your HSA debit card
 - Via electronic bill pay using our online banking or mobile app
 - With cash – just be sure to keep your receipts for tax-filing purposes
 - With a HSA check

Do I pay taxes on funds I take out of my HSA?

No, as long as these funds are used to cover qualified medical expenses.

What can I use my HSA funds for?

Use it for qualified medical expenses, which generally include most medical, dental and vision care costs. For a complete list of qualified medical expenses, please review the IRS Publication 502 (PDF).

Can other family members spend money in the account?

Yes. HSA funds can be used to pay or reimburse qualified medical expenses of the owner, his or her spouse, and any tax dependents.

Is there a deadline for reimbursing current year healthcare expenses?

No. As long as the medical expenses were incurred after you established the HSA, there is no time limit on when you must take a distribution to reimburse qualified medical expenses.

Recordkeeping

Do you provide year-end tax reporting?

Liberty Bank will provide you with IRS form 5498SA (annual contributions made), and IRS form 1099SA (annual distributions taken). You will receive your 1099SA by January 31; however, since you can make contributions up to the next year’s tax-filing deadline, you will not receive your 5498SA until sometime in May.

What happens if I need to prove how I spent the money in my account?

It is the account owner’s sole responsibility to keep receipts and records of monies used for qualified medical expenses in case of audit.

Disclosures

  1. There’s a lot to know about qualifying for and effectively managing your account. Please see our HSA FAQs for details and then consult www.irs.gov for additional information. Liberty Bank does not provide tax, legal or investment advice. If you have any questions on these matters, please contact a qualified accountant, attorney or investment advisor.

Health Savings Account (HSA) Rates


Account NameInterest RateAPY¹
Health Savings Account
$5,000.00+ 0.3% 0.3%
$2,500 - $4,999.99 0.2% 0.2%
$0.01 - $2,499.99
 0.1% 0.1%
Looking for rates for other Liberty Bank accounts? View all of our rates.

Disclosures

Rates are effective as of August 5, 2020.

  1. The Interest Rate and Annual Percentage Yield (APY) are as of the effective date and are subject to change without notice. Subject to 1099 reporting. Fees may reduce earnings.

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