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Health Savings Account (HSA)

A Health Savings Account is an account established for the purpose of paying medical expenses in conjunction with a high-deductible health care plan. It's a great way to save in advance for the out-of-pocket expenses you may have before you meet the conditions of your high-dedicuctible plan.

Eligibility: You are eligible for a regular HSA contribution if, with respect to any month, you: 

  • Are covered under a high-deductible health plan (HDHP) on the first day of such month;
  • Are not also covered by any other health plan that is not an HDHP (with certain exceptions for plans providing preventive care and limited type of permitted insurance and permitted coverage);
  • Are not enrolled in Medicare; and
  • Cannot be claimed as a dependent on another individual's tax return.
  • If you are eligible, you, your employer, your family member and any other person (including non-individuals) may contribute to your HSA. This is true whether you are self-employed or unemployed. Each year, you are responsible for determining your allowable annual HSA contribution and whether you have qualified medical expenses eligible for reimbursement with nontaxable HSA distributions. 

    Health Coverage Benefits: Savings can be used for any qualified medical expenses - even those not typically covered by your plans. 

    Tax-Benefits: Contributions to the HSA are 100% tax deductible. 

    Benefits Carry Forward: Unused savings, or earning, can be used in future years. 

    Account details:

    • Minimum balance to open: $50
    • Annual fee: $25
    • Interest paid
      • <$500: No interest paid
      • $500 - $4,999.99: Posted rate
      • $5000 and over: Posted rate

    To receive accrued interest, you must maintain a daily balance of at least $500.

    To learn more about the tax implications, check with your qualified tax preparer. 

    To establish your Health Savings Account, just come in and talk with us!