Health Savings Account (HSA)
A Health Savings Account (HSA) is a tax-exempt trust or custodial account established exclusively for the purpose of paying or reimbursing qualified medical expenses of you, your spouse, and your dependents. A HSA is established by you in much the same way that you establish an IRA.
You are eligible to make an HSA contribution if you:
- Are covered under a high-deductible health plan
- Are not also covered by any other health plan
- Are not enrolled in Medicare
- Cannot be claimed as a dependent on another person's tax return.
If you qualify for a HSA, you, your employer, your family members, and any other person (including non-individuals) may contribute to your HSA. This is true whether you are self-employed or unemployed. The maximum annual contribution amount is generally 100% of the annual medical insurance deductible.*
- Contributions are deductible*
- Contributions made by an employer may be excluded from employee's gross income.
- Earnings grow tax deferred
- Distributions for qualified medical expenses are tax free
- "Portable" account stays with you if you change employer or leave the work force.
- A "catch-up" contribution is available for individuals who are age 55+
Please contact a Personal Banker for assistance with any Health Savings Account related questions.
*Consult with your tax or legal professional for guidance.