Are you covered under a high deductible health plan? A Health Savings Account (HSA) might be right for you.
A Health Savings Account is an account designed solely for covering medical expenses. Each year you and/or your employer can make contributions to your account. You choose whether to use the funds for current bills or to save for future health care expenses.
Who is eligible for a Health Savings Account?
- Individuals that are enrolled in a high deductible health plan, who are not covered by any other health plan, not entitled to benefits under Medicare, and not a dependent on another person's tax return.
How does it work?
As funds accumulate in your HSA, you can use them to pay for current medical expenses including expenses that your insurance may not cover, or save the money in your account for future or unexpected medical bills. Any unused funds carry over year-to-year. You keep your account even if you move, change jobs or change your medical coverage.
What are the tax benefits?
Contributions may be tax deductible and withdrawals used for medical expenses are tax-free. Consult your tax advisor or IRS Pub 969 for more information.
What are the features of a Health Savings Account?
Features of a Health Savings Account include:
- Interest bearing account.
- Minimum to open account is $100.
- No service charge if $100 balance is maintained every day of the statement cycle.
- No per item charge.
- Check images returned in statements.
- Interest is compounded daily and paid monthly.
- MasterCard® Debit Card.
- Bill Pay.
Fees may reduce earnings on this account.