What are the benefits of a Health Savings Account (HSA)?
A Health Savings Account is an account that can receive contributions on a tax favored basis on behalf of an eligible individual and allows tax free distributions used to pay for qualified medical expenses.
With a Health Savings Account, you can deposit funds into an interest bearing account, and deduct the contributions on your tax return. There is no deadline for when you have to spend the money. You can roll over the funds each year and use them when you need them.
You can save for medical expenses with an HSA.
With this account, you can make tax deductible contributions and use the funds to pay for medical expenses for you, your spouse and your dependents. Covered medical expenses include prescriptions, doctor visits, dental and vision expenses.
To qualify for an HSA, you:
*Plus $1,000 maximum catch-up for individuals turning age 55 or older HDHP and contribution limitations are revised each year to reflect cost-of-living increases.
In addition to the standard HSA contribution limits shown in the previous table, if you have reached the age 55 before the close of a taxable year, you may also contribute an additional amount known as a "catch-up" contribution.
If HSA funds are used for any purpose other than a qualified medical expense, those funds are taxable, and will be penalized an additional 20 percent. The card also may not be used for cash withdrawals at the ATM.
Contact an HSA Administrator for additional information.
The interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on the account daily. Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks). Interest will be compounded monthly and will be credited to the account monthly on the daily collected balance. If the account is closed before the interest is credited, you will receive the accrued interest.
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