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Cogent Bank

Health Savings Account

A Health Savings Account, or HSA, is a unique, tax-advantaged account that can be used to pay for current or future healthcare expenses. When combined with a high-deductible health plan, it offers savings and tax advantages that a traditional health plan can't duplicate. With an HSA, you have:

tax-advantaged savings account you can use to pay for eligible medical expenses as well as deductibles, co-insurance, prescriptions, vision expenses, and dental care.

There are three key tax benefits to a Health Savings Account (HSA). Money goes into and comes out of an HSA tax-free (as long as funds are used to pay for qualified medical expenses).


Contributions to HSAs are not subject to federal income taxes.*


Earnings to an HSA from interest and investments are tax-free.


Distributions from an HSA to pay for qualified medical expenses are tax-free.

*Federal tax savings are available regardless of your state. State tax savings may not be available in every state. Cogent Bank does not provide tax advice. Consult your tax professional for tax-related questions. For more information concerning state taxes, please consult with your State Department of Revenue.

Contribution Limits

Tax Year

HSA Contribution Limit










At age 55, an additional $1,000 is allowed annually.

Qualified Medical Expenses

HSA funds can be used for some of the following common expenses.


IRS-Qualified Medical Expenses

· Acupuncture

· Ambulance

· Artificial limbs

· Artificial teeth*

· Birth control treatment

· Blood sugar test kits for diabetics

· Breast pumps and lactation supplies

· Chiropractor

· Contact lenses and solutions*

· Crutches

· Dental treatments (including X-rays, cleanings, fillings, sealants, braces and tooth removals*)

· Doctor’s office visits and co-pays

· Drug addiction treatment

· Drug prescriptions

· Eyeglasses (Rx and reading)*

· Fluoride treatments*

· Fertility enhancement (including in-vitro fertilization)

· Flu shots

· Guide dogs

· Hearing aids and batteries

· Infertility treatment

· Inpatient alcoholism treatment

· Insulin

· Laboratory fees

· Laser eye surgery*

· Medical alert bracelet

· Medical records charges

· Midwife

· Occlusal guards to prevent teeth grinding

· Orthodontics*

· Orthotic Inserts (custom or off the shelf)

· Over-the-counter medicines and drugs, if prescribed by a doctor(see more information below)

· Physical therapy

· Special education services for learning disabilities (recommended by a doctor)

· Speech therapy

· Stop-smoking programs (including nicotine gum or patches, if prescribed)

· Surgery, excluding cosmetic surgery

· Vaccines

· Vasectomy

· Vision exam

Services That May Be Eligible with a Letter of Medical Necessity Completed

This list is not all-inclusive:

· Weight-loss program only if it is a treatment for a specific disease diagnosed by a physician (e.g., obesity, hypertension, heart disease)

· Compression hosiery/socks, antiembolism socks or hose

· Massage treatment for specific ailment or diagnosis

· CPR classes for adult or child

· Improvements or special equipment added to a home or other capital expenditures for a physically handicapped person

Ineligible Expenses

Listed below are some services and expenses that are not eligible for reimbursement. This list is not all-inclusive:

· Aromatherapy

· Baby bottles and cups

· Baby oil

· Baby wipes

· Breast enhancement

· Cosmetics and skin care

· Cotton swabs

· Dental floss

· Deodorants

· Hair re-growth supplies and/or services

· Health club membership dues

· Humidifier

· Lotion

· Low-calorie foods

· Mouthwash

· Petroleum jelly

· Shampoo and conditioner

· Spa salts

Unused Funds

Unused funds that will roll over year to year. There's no "use it or lose it" penalty.

Additional Retirement savings.

After age 65, funds can be withdrawn for any purpose without penalty, but may be subject to income tax if not used for IRS-qualified medical expenses.

Tips for Navigating the HSA Transfer or Rollover Process

It is important to understand the elements of an HSA transfer or rollover when making the decision to consolidate. Cogent Bank has provided a brief list of tips to help you navigate the process:

  • HSA to HSA transfers are free and can be completed without limit
  • HSA rollovers are free, but can only be rolled over once within a 12 month period
  • You can deposit HSA funds to a personal account then send a personal check
  • Can also sign over the closing check by endorsing the back and including "For Deposit Only – Cogent Bank"
  • Cogent Bank does not count HSA transfers or HSA rollovers against the current tax-year IRS contribution limit. However, if you made current tax-year contributions to your prior HSA, those contribution amounts will be counted toward the annual IRS contribution limit and will be reported to the IRS by your previous custodian.
Cogent Bank does not charge any fees for transfer or rollover of your HSA accounts, your existing provider may charge an account closing fee.

Cogent Bank HSA Account Features

  • Interest Bearing Checking
  • Visa Debit Card
  • No minimum balance requirement
  • Online/Mobile Access
  • eStatements
  • Account to Account Transfers
  • Mobile Deposit
  • No monthly service fee

Apply for an HSA Account

If you or your employees are interested in applying for an HSA account from Cogent Bank, click below to contact us

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