What is a Health Savings Account?
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 by President Bush on December 8, 2003.
Who can have an HSA?
Any adult can contribute to an HSA if they:
- 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.
- 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 pay for medical expenses tax-free.
- Opening Deposit $25
- Daily Minimum Balance: $1,000
- If Balance Below Minimum: $2 per month - waived 1st year
- No Per Check Fees
- Interest rate: Variable, Tiered, Compounded Monthly
- Check Images Available: $3 per month
- HSA Debit Card Available
You can make a contribution to your HSA each year that you are eligible.
2014 Contribution Limits
- $3,300* - Self-only Coverage
- $6,550* - Family Coverage
2015 Contribution Limits
- $3,350* - Self-only Coverage
- $6,650* - Family Coverage
*Amounts adjusted annually for inflation.
Need more Information?
Contact Us today to learn more about opening a Health Savings Account!