Health Savings Account
IncredibleBank employees may elect to participate in the Heath Savings Account if you’re on a IncredibleBank High Deductible Health Insurance plan. Federal, State, and Social Security taxes are saved on every dollar contributed to the plan.
Advantages of Using an HSA
- Checking account opened at IncredibleBank – previous HSA amounts can be rolled into new account
- HSA dollars can be used for qualified medical expense
- Immediate tax savings when you contribute to the HSA
HSA Eligibility
To contribute to a Health Savings Account (HSA), you must be enrolled in an HSA-eligible High Deductible Health Plan (HDHP) and no disqualifying coverage.
- Medicare is considered “other disqualifying coverage” meaning all parts of Medicare will result in being ineligible to contribute to an HSA.
- Neither employee nor employer can make new contributions to the employee’s HSA if the employee is HSA ineligible; however, the employee may seek reimbursement from HSA expenses with existing funds when HSA ineligible.
- If your spouse is enrolled in their employer’s general health FSA program, this disqualifies an employee from contributing from HSA contributions. Health FSAs follow the same federal eligibility rules as medical plans. Under federal tax law, the employee (subscriber), spouse, and children to 26 (whether they remain the parent’s tax dependent) are enrolled in the health FSA automatically and can reimburse their eligible expenses from the plan. The employee is covered under the spouse’s health FSA (unless that employer excludes spouses from coverage, which is rare) and thus can’t become HSA eligible before the end of their health FSA plan year. The employee can still enroll in their employer’s HSA qualified medical plan, and the employee and spouse can reimburse any qualified expenses, including medical plan cost-sharing from their health FSA.
- Eligibility is determined month-by-month: HSA contributions will be reduced by 1/12 for each month during the year that the individual is not HSA eligible.
- Example: An individual who becomes entitled to Medicare in May would have a contribution limited to 4/12 of the annual limit.
MAKE SURE TO KEEP YOUR RECEIPTS!
Non-qualified distributions are taxable and subject to an additional 20% tax.
Contribution Maximums
Contribution Maximums
(set by IRS) | 2024 | 2025 |
HSA contribution limit
(employer + employee) | Single: $4,150
EE + 1: $8,550
EE + Child(ren): $8,300
Family: $8,300 | Single: $4,300
EE + Spouse: $8,550
EE + Child(ren): $8,550
Family: $8,550 |
HSA catch-up contributions
(age 55 to 64) | $1,000 | $1,000 |
If you have dual insurance coverage you are disqualified from contributing to an HSA plan and receiving the employer contribution.
IncredibleBank Annual Employer Contribution
| Coverage | Contribution |
| Single | $675 |
| Employee & Spouse | $975 |
| Employee & Child(ren) | $975 |
| Family | $1,350 |
Benefit eligible employees will receive the full employer contribution on their first check in January. Any other month will be pro-rated based upon the effective date of coverage.
Employer HSA contributions are provided to employees to assist with deductible costs as well as applicable expenses.
Please contact the People Team for assistance with this program.
Flexible Spending Account
IncredibleBank eligible employees may elect to participate in a Medical or Dependent Care Reimbursement account program. Federal, State, and Social Security taxes are saved on every dollar contributed to this program.
Flexible Spending Accounts are administered by UMR.
IncredibleBank 2025 Flex SPD
Check your spending account balances and submit receipts from anywhere
FSA FAQ
Employee Resource Guide
Account Type
MEDICAL REIMBURSEMENT ACCOUNT allows employees to use pre-tax monies to cover deductibles, co-pays, and other non-covered eligible expenses. Applies to those without a Health Savings Account (HSA).
FSA dollars can be used for qualified medical expenses
Annual Maximum = $3,300, Rollover = $660
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DEPENDENT CARE REIMBURSEMENT ACCOUNT – allows employees to save taxes on eligible child or dependent care expenses
Annual Maximum = $5,000
Annual re-enrollment is required to continue each year.
Please see eligible and ineligible dependent care expenses here.
Filing a Claim for Reimbursement
Please contact the People Team for assistance with this program.
