Health Savings Account (HSA)



Summary

If you have a high deductible health care plan, you may qualify for an HSA. HSAs let you use tax-advantaged savings to pay for medical expenses.

Contributions to your account, dividend earnings, and withdrawals for qualified medical expenses are all tax-free. Plus, there's no "use it or lose it" policy. Your contributions roll over year after year!

Account Details

  • Greater personal control over healthcare management and expenses
  • Earn interest above standard savings on entire balance
  • An HSA provides triple tax savings:
  • Tax deductions when you contribute to your account
  • Tax-free earnings through investment
  • Tax-free withdrawals for qualified medical, dental, vision expenses, and more*
  • Contributions are tax-free and can be made by you, your employer, or a third party
  • Contribute up to $3,350 per year as an individual or $6,650 for family coverage**
  • Contribution deadline is April 15
  • Funds can be withdrawn at any time***
  • No monthly service fee
  • No minimum balance requirements
  • Unused funds remain in account year after year; no "use it or lose it" policy
  • Keep your HSA in your name, regardless of career or life changes
  • In the event of death, your spouse assumes ownership of the HSA
  • If spouse is ineligible, or is not the primary beneficiary at the time of death, then the account stops being an HSA
  • No minimum deposit to open

*Consult a tax advisor.

**Accurate as of 2015. Refer to the IRS website for current contribution limits.

***You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a penalty.

Eligibility

Eligibility* is determined on the first of each month. To be eligible, you must:

  • Have a high deductible health plan
  • Have no other health coverage
  • Not be enrolled in Medicare
  • Not be claimed as a dependent on someone else's tax return

*It is up to the account holders to determine their own eligibility. Please contact your tax advisor for further eligibility requirements.