Frequently Asked Questions about HSAs

A Health Savings Account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee (First American Bank) to pay or reimburse qualified medical expenses you and your family incur. You must be an eligible individual to qualify for an HSA.
To be an eligible individual and qualify for an HSA, you must meet the following requirements. 1) You are covered under a high-deductible health plan (HDHP) on the first day of that month 2) You covered under an HSA qualified High Deductible Health Plan (HDHP) and have no other health coverage except what is permitted under “Other health coverage” 3) You are not enrolled in Medicare 4) You cannot be claimed as a dependent on someone else’s tax return.
A high-deductible health plan (HDHP) is a health insurance plan with lower premiums and higher deductibles than a traditional health plan. Being covered by an HDHP is also a requirement for having a health savings account. To view limits, visit our HSA page.

Deductibles and out-of-pocket expenses index annually, adjusting for inflation. All qualified medical expenses are used to reduce the plan's deductible, before the insurer starts paying claims (preventive care excluded). HSAs help reduce the overall cost of the plan's deductible due to their tax advantages and long-term savings/potential growth.
Yes. The HDHP must limit out-of-pocket expenses. To view these limits click here.
These amounts index annually, adjusting for inflation.
It is a checking account.
If you would like to close your HSA account at another financial institution and have that bank send the funds directly to First American Bank, you will need to complete and return the Health Savings Request for Transfer Form for processing. The form can be found here.

 If you would like to send funds a financial institution has sent you from an HSA that has been closed and it is within 60 days of closing that account, you may complete a Rollover Review form. The form can be found by clicking here:

You may send the completed form and check to:
First American Bank
Attn: HSA Department
P.O. Box 0794
Elk Grove Village, IL 60009.
In order to credit the funds back to the account correctly, please send the check and the HSA Tax Form Correction Request form to First American Bank. Once received, we will deposit the funds into your account in a way it will not affect your tax reporting. You may find the Tax Form Correction Request form by clicking here:
  
Once completed, please send the form via USPS to:
First American Bank
Attn: HSA Department
P.O. Box 0794
Elk Grove Village, IL 60009.
In order to add or change a beneficiary on your HSA, you will need to complete our Change of Beneficiary form. The Change of Beneficiary form can be accessed by clicking here.

Once completed, please send the form to via USPS at:
First American Bank
Attn: HSA Department
P.O. Box 0794
Elk Grove Village,IL 60009

Or via fax to (847) 890-6733

Or via email to HSA@firstambank.com

Or via secure message within Online Banking.
Qualified distributions are excludable from your gross income. Any other distributions will be included in your gross income and are subject to an additional 20% in addition to 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. You may find a listing of qualified medical expenses through IRS Publication 502 by clicking here.
If you are married and your spouse is your beneficiary, the HSA will be transferred into an HSA in their name. 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.
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 www.irs.gov. 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 www.irs.gov.
HSA Distribution Forms will be mailed in January. You should expect this form if you opened an HSA and took distributions, including rollover distributions, or had a taxable event in the prior tax year.
HSA Contribution Forms will be mailed in May. You will receive this form if you made any contributions, including rollover contributions, into your HSA for the prior tax year. The form will not be available until May because prior year contributions are allowed until the tax filing deadline.
State trust law determines when an HSA is established. Accounts are typically considered established when they are funded. IRS Notice 2008-59: General HSA Guidance Q&A 38 & 29.
For HSA purposes, expenses incurred before you establish you HSA aren’t qualified medical expenses. State law determines when an HSA is established. Please consult with a qualified tax preparation specialist or legal counsel to confirm your state specific law.
The First American HSA PLUS account allows you to invest a portion of your HSA in a variety of different 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 qualified medical expenses. The checking portion is an FDIC insured deposit account. The investment portion gives you the ability to invest in a variety of nationally recognized mutual funds. Savings held in the investment portion are not insured by the FDIC, not bank guaranteed and may lose value.
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 by clicking here.
No. However, you need to have a balance in excess of $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 for qualified medical expenses, you will need to bring your balance back above $2,000 before you can make any future investments.
Yes. A flat $4.95 monthly service fee applies to all First American Bank Health SavingsPLUS account owners. 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 read our interactive fund prospectus by clicking here.
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.
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.
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.
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.
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.
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 qualified 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.
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.
You can direct excess money into the investment portion of your account by logging onto www.firstambank.com and selecting Online Banking from the Login to Services 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.
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.
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).
Debit cards are issued to the primary account holder and the authorized signer on the account. HSAs are allowed one authorized signer.  If you would like to add a signer or confirm who the signer may be on your First American Bank HSA, please contact our HSA Customer Service team at (866)-449-1150.
Your debit card will be issued following the first successful contribution processed into any new account. 
Disclosures

1 A $4.95 monthly fee applies if requirement is not met. To receive the Rewards Annual Percentage Yield (APY) and refund of the monthly fee, the following must occur: Perform 15 qualifying payments during the monthly statement cycle. Qualifying Payments include Checks, online Bill Payments, ACH Debits, outgoing Wire Transfers and payments made with your First American Bank issued Mastercard debit card and must post and appear on your account statement.

As of 4/1/19, 1.00% APY applies to balances up to $15,000: 1.00% to 0.21% APY on balances over $15,000.00. Example: 0.81% APY will be paid on $20,000.

2 0.10% APY applies to all balances if monthly requirement is not met.

Rates may change after the account is opened. Fees may reduce earnings. First American Bank reserves the right to close any account. Limit one account per household. Individual, joint and living trust accounts only. Terms and conditions are subject to change. View disclosure.

3 Available to all Mastercard debit card users with the exception of Health Savings Account customers. Look for the Allpoint and Presto! logos to ensure your transaction will be surcharge-free.