Health Savings Accounts

A health care plan combining cost savings with flexibility

A Health Savings Account (HSA) gives you more flexibility and control over your health care costs. That's because it empowers you to make your own health care decisions.

Use pre-tax dollars to pay for future medical expenses

You will be able to deduct your contributions to your HSA, and the account earnings will accumulate on a tax-deferred basis. Best of all, distributions from your HSA are tax-free if they are used for qualified medical expenses.

Opening your HSA

To open an HSA, you must select a high-deductible health plan. The deductible must be at least $1,250 for an individual plan and at least $2,500 for a family plan. The major advantage of a high deductible plan is lower premiums.

Contributing to your HSA

You must enroll in a high-deductible health plan before you can make HSA contributions. Your employer's contributions to your HSA are tax-free, and you can deduct your own contributions to your HSA on your income tax return.

Account Balance is carried over

Unlike contributions to a flexible spending account, the balance of your HSA at the end of the year is carried over to the next year. So you're not placed in a position of having to "use it or lose it" each year.

Protection from catastrophic medical costs

To be coordinated with an HSA in 2013, a high-deductible health plan cannot have out-of-pocket limits which exceed $6,250 for an individual plan or $12,500 for a family plan. The high-deductible health plan provides you with protection from catastrophic medical costs, and the HSA provides you with a source of funds to pay some or all of the cost not covered by the health plan.

Control and flexibility

An HSA enables you to take control of your health care decisions. And since you are the owner of your HSA, it doesn't matter what your job status is or whether your employer makes contributions to your plan. Your HSA will always follow you.

Health Saving Account Benefits

  • Protection - You will have an opportunity to save money to pay high or unexpected medical bills.
  • Affordability - High health insurance policy deductibles mean lower premiums.
  • Savings - Your ability to deduct your contributions and the tax deferral of account earnings enable you to build your account.
  • Flexibility - You can contribute at any time during the year, and your HSA balance rolls over from year to year.
  • Portability - You own the account, so it goes where you go, regardless of any job changes.

Call or stop in today

We can explain your options, answer any questions you may have, and help you open your Health Savings Account.

Not intended as tax advice. Please consult a tax professional.

Health Savings Account