- Earns interest
- Contributions excluded from income
- Tax-deferred earnings
- Assets never taxed if used for qualified medical expenses
- Unused assets may be used for retirement (subject to ordinary taxation)
- Upon death, a spouse may treat the assets as his or her own HSA
Health Savings Account
Be prepared for life's unexpected emergencies.
Qualified Medical Expense Examples
- Actual medical expenses (doctors, prescriptions, dental care)
- Long-term care insurance
- Healthcare coverage when unemployed
- Certain continuation-of-benefit healthcare coverage
- Insurance options after age 65
Who is eligible to participate?
For coverage to begin, eligible individuals must be covered under a high deductible health plan (HDHP) on the first day of the month and should not be enrolled for Medicare benefits or covered by another health plan that is not an HDHP. HSA account holders should not be claimed as a dependent on another person’s tax return.
What is the cost to open an HSA?
$1,000 minimum opening deposit is required.
What is considered a high deductible health plan (HDHP)?
Not all high-deductible plans are HSA-eligible. It is the account holder’s responsibility to check with his/her insurer to make sure their plan is eligible. Requirements for the deductible and out of pocket amounts are updated annually. Please visit the US Treasury’s HSA site for specific details.
Can self-employed individuals have an HSA?
Yes. Sole proprietors and the self-employed are often ideal candidates.
What are the HSA contribution rules?
The total amount you or your employer may contribute to an HSA for any taxable year depends on whether you have individual or family coverage under a high deductible health plan. Contribution limits change each year. Please contact us to receive the current contribution limits.
Are there any fees associated with an HSA?
Yes, an annual fee of $25.00 applies.