Health Savings Accounts
Health Savings accounts have many benefits for consumers. The accounts offer significant tax savings to those who are eligible. The funds can be used for a variety of expenses and all money left in the account at the end of the year rolls over. The account stays with you if you switch jobs, move, become unemployed or retire.
- HSAs are available to individuals covered by a high-deductible health plan (HDHP). The individual can be self employed or be employed by a company offering an HDHP.
- HSAs offer triple tax benefits. You can deduct your HSA contributions on your tax return, the money will grow tax free, and withdrawals are tax free when used for qualified medical expenses.
- Non-qualified use of money in an HSA account is subject to a 10% tax penalty.
- Contributions can be made by you, your employer, or both. However, total contributions are limited on an annual basis.
- You are not eligible for an HSA once you are enrolled in Medicare. If you had an HSA before you were enrolled, you may keep it, but you may no longer contribute.
For more details on contribution limits or to open your account, stop by today.