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 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.
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.
To qualify for an HSA, you:
If HSA funds are used for any purpose other than a qualified medical expense, those funds are taxable, and will be penalized an additional 10 percent. The HSA Visa Debit Card will not be approved for transactions in restaurants, bars, hotels, or gambling venues. The card also may not be used for cash withdrawals at the ATM.
Contact a Personal Banker for additional information.