Health Savings

What is an HSA?

A Health Savings Account (HSA) is an account established by an individual to pay for medical expenses, allowing you to do so on a tax-favored basis. Contributions are tax- deductible and eligible distributions are tax-free.

HSAs are offered in conjunction with a high deductible health insurance policy. The high deductible policy provides protection against major medical expenses. The HSA is used to pay for day-to-day qualified medical expenses.

You control the money in your HSA. Money you do not spend can carry forward to future years. You can even use the money penalty-free after age 65 for any purpose you want.

You must meet eligibility requirements to have a Health Savings Account.

HSA Information

  • No Minimum Opening Deposit
  • No Balance Requirements
  • No Service Charge
  • Transactions: Must Follow HSA Agreement
  • Monthly Summary Statements
  • Quarterly Interest Payments on Balances of $1000 or More
  • Free Checks
  • Debit Card

Financial Advantages of an HSA

HSA contributions are a direct deduction from your Adjusted Gross Income. You do not have to itemize to receive this benefit. You can pay for day-to-day qualified medical expenses with those pre-tax dollars.
After age 65, funds can be used for any purpose, penalty-free. However, funds used for non-qualified medical expenses will be subject to income tax.

The cost of a high deductible plan can be substantially lower than many insurance plans.
Long term savings - your money earns interest.

Your account is portable, so it stays with you if you change employers or leave the workforce.

Who is eligible-2

Who is eligible?

To be eligible for an HSA, you must:

Be covered under a high deductible health plan (HDHP) - check with your insurance agent to confirm you have a qualifying plan

Not be covered by any other plan that is not a high deductible health plan

Not be enrolled in Medicare

Not be claimed as a dependent on another person’s tax return

How much can I contribute to an HSA?

The maximum amount you are allowed to contribute changes each year.

Tax year 2024

Single Plan $4150    |    Family Plan $8300

Tax year 2025

Single Plan $4300     |     Family Plan $8550 

If you are age 55+, you are allowed a “catch-up” contribution of an additional $1,000 over this amount. These numbers are provided for information only. Please see you tax professional for information specific to your particular case.

Wondering how to start saving?

Got questions or ready to get started? We’re here to help you find the perfect savings account for your needs. Contact us today, and let’s make saving easy and rewarding!

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