Take the financial stress out of medical expenses with an HSA. A Health Savings Account allows people and employers to set aside in advance for qualified medical expenses. Contributions are even tax deductible.
There’s no monthly service fee, just dividends above standard savings to be earned. Best of all, once established, an HSA always remains in your name – regardless of job or life changes. Your health isn’t always controllable but paying for your healthcare can be – get started with an HSA plan today.
Summary
- Greater personal control over healthcare management and expenses
- Prepare for qualified medical expenses
- Earn competitive dividends 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- Funds can be withdrawn at any time***
- No monthly service fee
- Low closure fee of $25
- Unused funds remain in account year after year; no “use it or lose it” policy
- Keep your HSA in your name, regardless of career or life changes
- $5 minimum deposit to open
*Consult a tax advisor.
**When used for qualified medical expenses. Consult a tax advisor. Qualified expenses include most medical care and services, dental and vision care, weight loss programs, some over the counter medications, mileage, and more.
***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 However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 10% penalty tax.
Eligibility
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.
To be eligible:
- You must be covered by a high deductible health plan (HDHP) on the first day of a month to qualify for eligibility for that month.
- You must have a minimum deductible of $1,250 for individuals or $2,500 for families.
- Your annual out-of-pocket expenses (including deductibles and co-pays) cannot exceed $6,250 for individuals or $12,500 for families.
- Maximum contribution cannot exceed $3,250 for individuals and $6,450 for families.
- A person age 55 or older may make an additional $1,000 in “catch-up” contributions.
- You cannot be covered by any other health plan that is not an HDHP.
- You cannot be enrolled in Medicare.
- You cannot be claimed as a dependent on someone else’s tax return.
- You must be under age 65.
There are no eligibility restrictions regarding income level and there is no requirement of earned income to make contributions.