Health Savings Account

Your UMB Health Savings Account (HSA) is a versatile tool that allows you to decide whether to spend your money to pay for qualified medical expenses or save your money to allow your HSA to grow for future expenses like retirement. Qualified medical expenses are defined by the IRS Code Section 213(d) and include amounts paid for your medical
needs.

The IRS requires that you keep itemized receipts to document your withdrawals. Your qualified tax free HSA withdrawals may be expenses made by you, your spouse, or your eligible dependents, regardless of whether they are covered on the medical plan or not.

Start a Savings Plan for Your Health
By enrolling in your company’s high-deductible health plan you may be eligible to open and save in a health savings account (HSA) from United Missouri Bank, Member FDIC. Here is some information about how an HSA works and directions for getting started.

What is an HSA?
Think of an HSA as a savings plan for health care you’ll need today, tomorrow and into the future. It works like a regular bank account, but you don’t pay federal income tax on the money you deposit. When you use your HSA money to pay for qualified medical expenses, you won’t pay income taxes on the money, either. You even build your savings into a nest egg for retirement.

Unlike a flexible spending account (FSA), your savings grow from year to year. There’s no “use it or lose it” rule. The money is there when you need it. And it’s yours to keep.

Why have an HSA?
An HSA simply helps you plan, save and pay for health care.

You own it.
The money belongs to you, even deposits made by others, such as an employer or family member. You keep it, even if you change jobs or health plans.

It has triple tax benefits.
• Money deposited is federal income tax-free.
• Savings grow tax-free.
• Withdrawals made for qualified expenses are also income-tax free.

Anyone can contribute.
You, your employer or a loved-one. There are no restrictions on who can put money into your account.

It’s not just for doctor visits.
You can use your HSA to pay for medical needs such as eyeglasses, hearing aids and qualified prescriptions. You can even use your savings to pay for other kinds of health insurance, such as COBRA, long-term care and any health plan coverage you have while receiving unemployment compensation. When you turn 65, you can use HSA savings to pay for any tax deductible health insurance (except for Medicare supplemental insurance).

You can invest it.
Once your balance reaches the investment threshold, you can begin investing in mutual funds. If you earn money on your investments, you don’t pay income tax on that money, either.

You can save for the future.
By saving in an HSA, you can be ready for expenses due to illness or accident. And, after you turn 65 or become entitled to Medicare benefits, you may withdraw money from your HSA for expenses that are not qualified medical expenses which are subject to standard income taxes, without penalty. Save as much as you can now, and you could possibly have a nest egg when you retire.

What else you need to know about an HSA
Eligibility rules apply.
To deposit money into an HSA, you must be enrolled in an HSA-eligible health plan. You are eligible if:
• You are covered under an eligible high deductible health plan (HDHP).
• You are covered by no other health coverage, unless it is permissible coverage like vision or dental.
• You are not enrolled in Medicare.
• You cannot be claimed as a dependent on someone else’s tax return.

Some other restrictions apply. Please consult your tax, benefits or financial advisor.

If you switch to a health plan that makes you ineligible to continue depositing money in an HSA, you may continue to use the money in your account for qualified medical expenses, but you can no longer make deposits.

Contribution limits are determined every year by the IRS.

For 2026, you can deposit up to $4,400 if you have individual coverage and $8,750 if you have a family policy. The IRS also allows you to make an extra catch-up deposit of $1,000 if you are 55 or older.

You can make contributions all the way up to the tax-filing deadline (usually April 15) and still get tax credit for the previous year.