How does an HSA work?

You must be covered by an HDHP to open an HSA

You must have coverage under an HSA-compatible High Deductible Health Plan to be eligible to open a Health Savings Account. If you do not have an HDHP yet, contact your insurance professional. You can open a Citizens Bank HSA by calling 1-888-784-4584.

Fund your Citizens Bank HSA to the limit

Your Citizens Bank HSA can be funded by you, family members, or anyone. The total contributions from all sources generally cannot exceed the annual limits set by the IRS. If you are age 55 or over, you may be able to make a "catch-up" contribution that is not subject to the annual limits. Your HSA contributions are tax-deductible.

Use your HSA for qualified medical expenses

With an HDHP/HSA, you are responsible for paying most day-to-day medical expenses until the HDHP deductible is reached. The money in your Citizens Bank HSA can be used tax-free for any IRS-qualified medical expenses. Funding your HSA makes sure you have money to pay for medical expenses before the HDHP deductible is reached.

Maximize the HDHP benefits and HSA tax advantages

Under the health reform law, health plans may be required to provide certain preventive care at no cost. Taking advantage of the preventive care coverage is an important part of getting the maximum benefit from an HDHP. When you have a qualified medical expense, you can pay for it tax-free out of your Citizens Bank HSA. You can also pay out-of-pocket and allow your HSA balance to continue growing tax-free. State taxes may vary.