Health Savings Account
A Health Savings Account (HSA) is designed to pay for medical expenses. It can help you save for a time when money is surely needed, as well as provide favorable tax treatment.
|Security: Your high deductible insurance and HSA protect you against high or unexpected medical bills.|
|Affordability: You should be able to lower your health insurance premiums by switching to health insurance coverage with a higher deductible.|
|Flexibility: Use the funds to pay for medical expenses, including those your insurance may not cover. You also can save the money in your account for future needs.|
|Savings: Save the money for future medical expenses and grow your account through investment earnings.|
|Control: You decide how much money to put into the account, whether to save for future expenses or pay current medical expenses, and which medical expenses to pay from the account|
|Ownership: Funds remain in the account from year to year, just like an IRA. There are no “use it or lose it” rules.|
|Tax Savings: HSA contributions are tax deductible and distributions used to pay or reimburse qualified medical expenses are tax free.|
Eligibility for a Health Savings Account
|Contribute to an HSA if you:|
|Have coverage under an HSA-qualified High Deductible Health Plan (HDHP).|
|Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted).|
|Are not enrolled in Medicare.|
|Are not claimed as a dependent on someone else’s tax return.|
Contributions to your HSA can be made by you, your employer or both. However, the total contributions are limited annually. Contributions for 2018 on individual coverage may not exceed $3,450 annually while contributions on family coverage may not exceed $6,900. These numbers are released by the IRS yearly.
Health Savings Account Rates
5 APY = Annual Percentage Yield correct as of 6/5/15. Dividends are compounded and credited monthly. Rate is subject to change after account is opened.
|Minimum Deposit to Open||Minimum Balance Tiers||APY* / Dividend Rate|
|none||$1,000||0.10% / 0.10%|
|none||$20,000||0.10% / 0.10%|
|none||$75,000||0.15% / 0.15%|
The information provided is not intended as tax advice. Please consult a tax advisor for additional information regarding tax deductions and HSA eligibility.