Health Savings Accounts (HSA)

Ensure a smooth road to recovery. Health Savings Accounts (HSAs) allow you to save up for qualified healthcare costs. Tax advantages, competitive interest, and employer contributions help grow your funds — relieving financial stress from the recovery process. And your HSA remains yours, no matter where you work.  

Summary
  • Prepare for qualified medical expenses
  • Earn interest on entire balance
  • An HSA provides triple tax savings:
    • Tax deductions when you contribute to your account
    • Tax-free earnings through investment
    • Tax-free withdrawals for qualified medical, dental, vision expenses, and more*
  • Contributions are tax-free* and can be made by you, your employer, or a third party
  • Funds can be withdrawn at any time**
  • $5 opening fee, must be paid in cash
  • $25 annual fee
  • Money rolls over year-to-year automatically; no “use it or lose it” policy
  • Keep your HSA in your name, regardless of career or life changes
  • $100 minimum deposit to open
  • Rates are subject to change at any time
  • FDIC insured

*Consult a tax advisor

**You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 20% penalty.

Eligibility

General Requirements

  • Must be covered under a qualified, high deductible health plan
  • Must not have coverage by another type of health plan
  • Cannot be claimed as a dependent on another person's tax return
  • Cannot be enrolled in Medicare

Most adults under 65 who are not enrolled in Medicare and are covered under a high-deductible health plan (HDHP) can qualify for an HSA, but it is up to the account holders to determine their own eligibility. Please contact your tax advisor for further eligibility requirements.

Contribution Limits

Contribution limits are set by the IRS. Current 2016 contribution limits are:

  • $3,350 for a single person
  • $6,750 for a family (2016 limit)
  • A person age 55 or older may make an additional $1,000 in "catch-up" contributions

Get more from your healthcare dollars.