Your HSA and taxes, COBRA and bank options
General information about banking options, COBRA and taxes.
Banking options
You can choose any bank as your HSA fiduciary. If you don't already have a bank in mind,
review our list of our HSA banking partners. One of our preferred banks is Fifth Third, which offers a free product to all Priority Health clients (no set-up fee for online enrollments and no monthly maintenance fee).
Check out Fifth Third's HSA management website.
Contact your account representative for more information about choosing a bank.
HSAs and COBRA
PriorityHSA
SM is subject to COBRA rules:
- All COBRA-eligible groups must offer the high deductible health plan to terminated employees.
- Employer contributions are not subject to COBRA. You may stop making HSA contributions for COBRA participants.
Tax information and implications
There are different tax implications for the self-employed, partnerships or S-Corps. If you have questions about HSAs and tax implications, contact your accountant or
refer to IRS Notice 2005-8.
Using Form 8889
Make sure your employees file Form 8889 each year they have an HSA. This form tells the IRS about all contributions and distributions made during the year and allows the account holder to list any after-tax contributions so they receive an "above-the-line" deduction.
