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The following sections are intended to answer common questions regarding Health Savings Accounts and how they work. If you would like further detail, please visit the HSA section of the Internal Revenue Service website, Internal Revenue Service –Rules and Regulations.


Click on a FAQ category below, then click on each question to get the answer.

Health Savings Accounts FAQ

What is a Health Savings Account?
A Health Savings Account (HSA) is a tax-exempt trust or custodial account which you use to pay qualified medical expenses for you and your family.
Am I eligible for an HSA?
If you meet the following criteria in any one month, you are eligible:
  • You are covered under a high-deductible health plan (HDHP) on the first day of that month;
  • You are not covered under another type of health plan that is not an HDHP (Certain exceptions apply);
  • You are not enrolled in Medicare (generally, are under 65 yrs. old); and
  • You may not be claimed as a dependent on another individual's tax return
What is an HDHP?
For 2018, an HDHP is a plan with an annual deductible of at least $1,350 for individual coverage ($1,350 for 2019) or $2,700 for family coverage ($2,700 for 2019). These amounts are subject to cost-of-living adjustments (COLAs).

Are there other requirements for the HDHP?
Yes. The HDHP must limit out-of-pocket expenses. For 2018, the maximum out of pocket expenses, which include money applied to your deductible and your coinsurance for covered charges, must be no more than $6,650 for individual coverage ($6,750 for 2019) and no more than $13,300 for family coverage ($13,500 for 2019). These amounts are subject to COLAs.

Who can contribute to my HSA?
Once you have met the requirements, anyone may contribute to your HSA, regardless of your employment status.

How much can I contribute to my HSA?
For 2018, you can contribute up to $3,450 ($3,500 for 2019) for individual and $6,900 ($7,000 for 2019) for family.

In addition, a “catch-up” contribution is available for eligible individuals who have attained age 55 by the end of their taxable year but have not attained age 65. For 2018/19, the amount is $1,000.

How do I make a deposit into my HSA account?
There are several ways to make deposits easily to your First American HSA account. You can:
  • Set up an automatic deposit from your employer
  • Wire funds to your account
  • Transfer funds from another First American Account
  • Mail your deposit to:

    First American Bank
    Attn: HSA Department
    P.O. Box 0794
    Elk Grove Village, IL 60009

What are the Federal Tax benefits of an HSA?
100% of your contribution is deductible. Furthermore, the earnings grow tax deferred and all qualified distributions are tax free. Be sure to consult with your tax or legal professional for guidance.

How do I claim the Federal Tax Deduction for my HSA contribution?
Any contributions made by you and any other person on your behalf are deductible as long as they do not exceed the maximum annual contribution amount. Employer contributions are not deductible. However, any employer contributions do not count as wages for federal income tax purposes.

When is the contribution deadline for funding an HSA?
Any contributions for the taxable year can be made in one or more payments, at the convenience of the individual or the employer, at any time prior to the time prescribed by law (without extensions) for filing the eligible individual’s federal income tax return for that year, but not before the beginning of that year. For calendar year taxpayers, the deadline for contributions to an HSA is generally April 15 following the year for which the contributions are made. Although the annual contribution is determined monthly, the maximum contribution may be made on the first day of the year.

How are HSA distributions taxed?
Qualified distributions from your HSA are excludable from gross income. Any other distributions are included in your gross income and are subject to an additional 20% tax on the amount included, except in the following cases:
  • Your death
  • Your disability
  • You reach the age of 65
Any HSA distributions that are not rolled over will be taxed as income in the year they are distributed, unless used for qualified medical expenses. HSA custodians/ trustees are not required to determine whether HSA distributions are qualified. The qualified medical expenses must be incurred only after the HSA has been established.

What happens to my HSA in the event of my death?
If you are married and your spouse is your beneficiary, the HSA becomes their HSA.

If your beneficiary is not your spouse, the HSA ceases to be an HSA effective on the date of your death. The proceeds will be included in the beneficiary’s gross income for the year of death.

How do I know whether my expenses are qualified or not?
It is your responsibility to be sure that you are paying qualified health care expenses from your Health Savings Account.

The best way for you to be sure if your expenses are qualified is to refer to Section 213 of the IRS Code, under Publication 502: Medical and Dental Expenses.  To order IRS Publication 502, call 1-800-TAX-FORM (1-800-829-3676), or go to

Please consult with your tax advisor regarding these matters.  First American Bank is not responsible for determining if your distributions qualify, nor do we provide tax advice.

If you would like more information about Health Savings Accounts and HDHPs, go to


Health SavingsPLUS Accounts FAQ

What is a Health SavingsPLUS (HSA PLUS) Account?
The First American HSA PLUS account allows you to invest a portion of your HSA in a variety of mutual funds. These mutual funds may provide higher yields than you would otherwise earn if your funds were left solely in your HSA.

The Health SavingsPLUS Account is composed of two parts:
  • A checking portion – This is an interest bearing account that works just
  • like our traditional HSA. You can write checks, make deposits, and use your debit card to pay any medical bills. This portion is insured by the FDIC.
  • An investment portion – You may invest in a variety of nationally recognized mutual funds. Monies in this portion are not insured by the FDIC, not bank guaranteed and may lose value.
What are my investment options?
Every investor should be able to design an investment plan to meet their individual needs and goals. We have selected several nationally recognized mutual funds. See current fund offerings.

Is there a minimum investment amount?
No. However, you need to have a balance exceeding $2,000 in the checking portion of your account prior to making any investments. While your balance may fall below $2,000 as you pay medical expenses, you will need to bring your balance back above $2,000 before you can make any additional investments.

Are there any fees?
Yes. A flat $4.95 monthly fee will apply to your First American Bank Health SavingsPLUS account. You may make an unlimited number of reallocations between funds and/or an unlimited number of transfers to and from the checking portion of your account with no additional fees from First American Bank. However, please note that some mutual funds may charge fees and expenses as stated in the fund's prospectus. Mutual fund exchange fees may apply for funds held less than the length of time specified in the fund's prospectus and annual trading limits may apply. For complete information on the Health SavingsPLUS Account mutual funds, including fees and expenses, please see the fund prospectus.

How do I choose the mutual funds that are appropriate for me?
Read carefully each fund's prospectus which includes information on the fund's investment objectives, risk, charges, and expenses along with other information before investing or sending monies. You may also choose to consult with your financial advisor to determine appropriate investment options.

Are the funds FDIC insured?
An investment in the Health SavingsPlus mutual funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the funds seek to preserve the value of your investment, it is possible to lose money by investing in the funds. Investors should consider these and other relevant facts when choosing among investment options under an HSA, particularly if the need arises to have to finance short-term medical costs out of an investment account.

Who is Devenir and what is their role?
Devenir, LLC is a registered investment advisor and Broker Dealer member NASD/SIPC that was chosen by First American Bank to research and select the Health SavingsPLUS Account investment options. Devenir's investment selection methodology screens the plan's mutual fund options on a number of criteria, which includes, but is not limited to, total fund performance, category ranking by Morningstar® and track record. Devenir will periodically review and may recommend changes in the program's group of mutual funds if a particular fund no longer meets the investment selection criteria. You will not be given separate notice of these changes; however, the Current Funds page will always list the current group of mutual funds and provide access to fund prospectuses. Any change in the group of mutual funds will not affect amounts you have previously invested and you may continue to hold that fund. However, you will not be able to make any new investment into that fund.

How do I invest my money?
In order to invest monies into the investment portion of your HSA Plus account, click here to sign in. You can now select "Set Future Invest Selections" to change the allocation of future contributions to your investment account or select "Realign HSA Investments" to change your current holdings.

How do I get access to my invested funds?
Generally, you will be able to have online access to your invested funds the day after you've activated that portion of your account. Click here to log in.

How can I pay for eligible expenses?
You may only access funds in the checking portion of your Health SavingsPLUS Account. If you wish to use the assets from your investment portion to pay for your medical expenses, you must redeem your mutual fund holdings and transfer the proceeds to the checking portion of your account. The assets from the investment portion can only be accessed by transferring to the checking portion of your Health SavingsPLUS account. Funds will not be available on a same day basis. Please allow up to 5 business days for the funds to be available in the checking portion of your account.

Do I need to deposit funds into the checking portion of my Health SavingsPLUS account before moving funds into the investment portion?
Yes. You can only make deposits into the checking portion of your account. Once the funds are available in the checking portion and your balance exceeds $2,000, you may transfer money to the investment portion.

How do I move excess monies into the investment portion of my account?
You can direct excess money into the investment portion of your account by logging onto and selecting "Online Banking" from the Online Services pull down menu. After you have logged on to your account, please select "Funds Transfer" and follow these steps:

Select your HSA PLUS Account in the "From" field and select HSA PLUS Investment Account in the "To" field. Enter in the amount of money you would like to invest in your mutual funds. Remember your checking balance must exceed $2,000 and you may only invest the funds in excess of the $2,000 balance.

The funds will be allocated to the different mutual funds, based upon the investment allocations you have set up. You can change these allocations or realign your current portfolio at any time by logging onto the "HSA PLUS Investment" site.

Please note that once you have made your allocations, any future contributions to the investment portion will be distributed according to the allocations you've selected.

How do I transfer money back into the checking portion from the investment portion of my account?
You can request a distribution through the "Transfer Back to Base Account" link under the "Move Money" on the investment site. Please allow at least 2-3 business days in order for the money to be transferred into your account.

How do I change my investment allocations?
At any time you may log onto the HSA PLUS Investment site from our website to change your allocations. If you have a question that was not answered please contact us by Email or call our Toll Free HSA Help Line at (866) 449-1150 or call us at (847) 952-3700 (press 2 then press 4).



If you have any additional questions please contact us at or call our toll free HSA Help Line at (866) 449-1150 or locally (847) 952-3700 (option 2,  then 4).


HSA Investment Website Resources & Tutorials

Contribution Limits


Minimum Deductible

2019: $1,350
2020: $1,400

2019: $2,700
2020: $2,800

Maximum  Out-of-Pocket

2019: $6,750
2020: $6,900

2019: $13,500
2020: $13,800

Contribution Limit

2019: $3,500
2020: $3,550

2019: $7,000
2020: $7,100

Catch-up Contribution (55 or older)



 HSA Calculators

Apply for HSA

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