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| Personal Savings |
Health Savings Account |
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A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment. HSAs were signed into law in December 2003.
Who can have an HSA?
| Any adult can contribute to an HSA if they: |
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Have coverage under an HSA-qualified high-deductible health plan (HDHP). |
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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). |
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Are not enrolled in Medicare. |
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Cannot be 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. If you make a contribution, you can deduct the contributions (even if you do not itemize deductions) when completing your federal income tax return. Contributions to the account must stop once you are enrolled in Medicare. However, you can keep the money in your account and use it to pay for medical expenses tax-free.
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No minimum deposit amount to open. |
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Interest bearing account with a variable rate of interest. |
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The interest rate is based on the Fed Funds rate. |
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Primary access is by VISA® Check, or by check if customer chooses. |
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Required information will be reported annually to the IRS and to the account holder to assist in tax preparation. |
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There is a one-time $25 set-up fee and a $1 processing fee for each check written. No monthly service charge. Regular fee schedule applies for all other services. |
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