Health Savings Account (HSA)

Finally an Account that allows you to pay for your out of pocket deductible with tax free funds.

  • Contributions are TAX DEDUCTIBLE
  • Interest earned is TAX DEFERRED¹
  • Distributions are TAX FREE if spent on qualifying medical expenses*

That's Triple Tax Advantage Savings to You!

No one else offers a Health Savings Account (HSA) like Trustco Bank!

  • No Enrollment Fees
  • No Prior Relationship requirements
  • No Administration Fees
  • No Deposit or Transaction fee
  • No Overdraft Fee
  • No Closing fee
  • No Monthly Fee
  • No Annual Fee
  • No Minimum Balance Requirement
  • Free HSA Debit Card²
  • Free First Box of Checks
  • Free Automatic Transfers
  • Free Online Banking
  • Free Direct Deposit

If you concerned about the high cost of health care or are you planning ahead for potential medical expenses that may arise? Trustco HSA is a very good, economical option you may want to consider.

Here’s why: Let’s say you’ve got a high out of pocket deductible to meet with your health insurance plan, rather than paying for these expenses with your checking account or your credit card, you can use your Trustco HSA to cover these costs with pre-tax dollars. In a sense you’ll get a discount on your medical expenses with your Trustco HSA.

With the Trustco HSA there are no “use it or lose it” conditions, any money you don’t use in your Trustco HSA will remain from year to year and accrue interest until you use it.

And even better! Your Trustco HSA can provide you additional Retirement Savings, too. After age 65, funds can be withdrawn for any purpose without an IRS penalty but you will have to claim the distribution as income.

Who can open a Trustco HSA?

  • Anyone that is covered under a High Deductible Health Plan (HDHP) and
  • Anyone with a HDHP that is not eligible to be claimed, as a dependent on someone else’s tax return and
  • Anyone with a HDHP that is not enrolled under Medicare

Contribution Limits

The annual contribution limit, including catch up limits, is usually based on the health care coverage and eligibility on a monthly basis.

The IRS set limits are:

Individuals with a Self-Only Plan:

Tax Year Under 55 Age 55 or Older
2024 $4,150* $5,150*
2023 $3,850* $4,850*

Individuals with a Family Plan:

Tax Year Under 55 Age 55 or Older
2024 $8,300* $9,300*
2023 $7,750* $8,750*

Did you know?

An HSA is always in an individual name. There are no joint HSAs, even when the HSA is linked to a family coverage HDHP and subjected to the higher family contribution limits.
Penalties for Non-qualified Expenses: Those under age 65 (unless permanently disabled)who use HSA funds for non-qualified medical expenses face an IRS penalty of 20 percent of the funds used for such expenses, funds spent for non- qualified purposes are also subjected to income tax.

Coverage of Adult Children: While the Affordable Care Act (ACA) allows parents to add their adult children (up to age26) to their health plan, the IRS has not changed its definition of a dependent for HSA. This means that an individual whose 24 year old child is covered on their HSA qualified health plan is not eligible to use HSA funds to pay that child’s medical bills unless they can claim that child as their dependent on their tax return. If account the account holder cannot claim the child as a dependent on their tax return, then they can’t spend HSA dollars on services provided to that child. According to the IRS definition, a dependent is a qualifying child who:

  • has the same principal place of abode as the covered employee for more than one half of the taxable year.
  • has not provided more than one half of his or her own support during the taxable year.
  • is not yet 19 (or, if student, not yet 24) at the end of the tax year, or is permanently and totally disabled.

Please refer to the IRS website ( for more information or speak with your legal or tax professional.

Let your Home Town Banker answer your questions on your Health Savings Accounts. Visit any Trustco branch location.


1 - Interest is earned at the same rate as our statement savings account.

2 - Initial debit card supplied at no cost. A fee may apply for replacement cards.

* A list of what is considered qualified medial expenses can be obtained either from the IRA website ( under publication 502 or from your legal or tax professional.