Finally, an account that allows you to pay for qualified medical expenses that insurance may not cover, while helping you save through tax breaks.
What are HSAs?
Health Savings Accounts (HSAs) are tax-friendly savings accounts that allow you to build a fund for future medical expenses that insurance may not cover. The best part is, the account is all yours and any unused funds may be used to supplement your retirement savings.
Who is Eligible?
Anyone under 65 who is covered by a qualified High Deductible Health Plan (HDHP) and not another health insurance carrier or Medicare may be eligible to open an account. In addition, if you are claimed as a dependent by another person, you are not eligible to open an HSA.
- HSA contributions are made with pre-tax monies, which means all contributions are tax-deductible.
- Any interest earned on your account is tax-free.
- Contributions may be made by you, your employer, or members of your family.
- HSAs have a flexible contribution schedule allowing for a lump sum contribution or periodic payments at any time.
- Funds may be rolled over each year.
Using Your HSA
You may use your HSA immediately or keep it for the future. Please consult your health plan to check on how your HSA may be paid out. Generally, access is allowed by debit card, check, or withdrawal request.