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State Farm Bank® deposit products are FDIC insured.

Health Savings Account (HSA)

A Health Savings Account provides tax-deductible contributions, tax-free earnings, and tax-free withdrawals for qualified medical expenses2, and competitive interest rates with interest that compounds daily.1 Must be combined with high-deductible health insurance.

To open your account, call State Farm Bank at 877-SF4-BANK(877-734-2265). If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services.

HSA Highlights

  • No minimum opening deposit
  • Carry unused balances forward from year to year
  • Interest earned is not taxed1
  • Contributions to your HSA may be tax-deductible2 and may be made by you, your employer, or both
  • Annual service fee of only $253
  • Can write checks, transfer funds or withdraw money when you need it

HSA Eligibility

  • HSAs are sole owner accounts with the option to list payable on death (POD) beneficiaries and powers of attorney (POA)
  • Requirements for an eligible individual to qualify for an HSA:
    • You are covered by a high-deductible health plan (HDHP)
    • You have no other health coverage except what is permitted under “other health coverage” (See Publication 15-B)
    • You aren’t enrolled in Medicare
    • You can’t be claimed as a dependent on someone else’s tax return
  • Other restrictions may apply 2

HSA Features and Benefits

  • Ability to use funds for unexpected broken bones or other medical expenses
  • Competitive interest rates with interest that compounds daily
  • Health Savings Visa® Debit Card available to make qualified purchases, cash withdrawals, or ATM deposits4
  • Visit our HSA calculator
  • No minimum balance fee3

HSA Limits

2018 HSA LimitsSelfFamily
HDHP Min Deductible$1,350$2,700
Max out of pocket$6,650 $13,300
Max Annual Contribution$3,450 $6,900
Catch-up contributions (55yrs or older)5$1,000$1,000

2019 HSA LimitsSelfFamily
HDHP Min Deductible$1,350$2,700
Max out of pocket$6,750 $13,500
Max Annual Contribution$3,500 $7,000
Catch-up contributions (55yrs or older)5$1,000$1,000

What is a Health Savings Account?

An HSA is a valuable option to save for medical expenses while reducing your taxable income. If you’re anticipating surgery in the near future or just planning for medical expenses, it’s an ideal option.

To be eligible, you must already be enrolled in high-deductible health insurance.

But you may benefit financially in several ways when it comes to taxes. If you follow government guidelines and withdraw funds for eligible expenses, then your money grows tax free and may be used tax free.1

To open your account, call State Farm Bank at 877-SF4-BANK(877-734-2265). If you are hearing impaired, or do not use your voice to communicate, contact us via 711 or other relay services.

Withdrawals for Non-Medical Expenses?

Distributions for other than qualified medical expenses2 prior to age 65 may be taxable and subject to an additional 20% penalty tax. Distributions may be withdrawn for non-medical reasons without tax penalty at age 65, death, or disability, but federal income tax must be paid on the distributions.”

1 Neither State Farm nor its agents provide tax or legal advice. Please consult with your tax advisor regarding your specific situation regarding federal and state taxation.

2 You should consult with your tax advisor about your specific situation. For more information, you may also want to consult IRS Publication 969.

3 The $25 service fee, which is debited on the first anniversary of the account activation and annually thereafter, will be considered as part of the annual compensation limit. For example, if the participant's maximum contribution is $3,500, he or she will be able to use $3,475 for distribution and $25 will be retained as the service fee. However, the entire $3,500 will still be deductible for federal income tax purposes.

4 Refer to the Pricing Schedule for Consumer & Business Deposit accounts and the Truth in Savings Disclosures for more details.

5 A catch-up contribution allows accountholders, aged 50 or older, to make additional contributions to their IRA retirement accounts.

State Farm Bank, F.S.B., Bloomington, Illinois ("Bank"), is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and may be subject to investment risk, including possible loss of principal invested. The Bank encourages any interested individual(s) to submit an application for any product(s) offered by the Bank. We also encourage you to obtain information regarding the Bank's underwriting standards for each type of credit or service offered by visiting statefarm.com® or by contacting the Bank at 877-SF4-BANK (877-734-2265). If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services. To apply for a Bank product, you may also see your participating State Farm Agent.