Is a Health
Savings Account right for you?
We're here to help!
A Health Savings Account (HSA), is a
tax-advantaged medical savings account available
to taxpayers in the United States who are
enrolled in a High Deductible Health Plan (HDHP).
The funds contributed to an account are not
subject to federal income tax at the time of
deposit. Unlike flexible spending accounts
(FSA's), funds roll over and accumulate year to
year if not spent.
HSA's are owned by the individual, which
differentiates them from company-owned Health
Reimbursement Arrangements (HRA's) that are an
alternate tax-deductible source of funds paired
with either HDHP's or standard health plans.
HSA funds may currently be used to pay for
qualified medical expenses at any time without
federal tax liability or penalty. Beginning in
2011, OTC (over the counter) medications cannot
be paid by HSA funds without a Doctor's
Withdrawals for non-medical expenses are treated
very similarly to those in an IRA in that they
may provide tax advantages if taken after
retirement age, and they incur penalties if
HSA's were established as part of the Medicare
Prescription Drug, Improvement, and
Modernization Act which was signed into law in
December of 2003.
If your medical coverage is a High Deductible
Health Plan, a Health Savings Account may be
right for you. Please stop in and see a Personal
Banking Specialist for more information, or to
set up your Health Savings Account.