Health Savings Account (HSA)
An H.S.A. is designed to help you better manage the payment of your healthcare expenses by allowing you to take advantage of lower premium insurance plans. Set aside funds on a pre-tax or tax-deductible basis to pay for routine healthcare - such as office visits, prescription drugs and other medical expenses. This account is available to individuals covered by a high deductible health plan.
- Summary
- Earns a competitive rate of interest
- $50 minimum deposit to open
- $1,000 minimum daily balance required to avoid a $2.50 monthly service charge
- No withdrawal fees
- Deposits and withdrawals are limited by the Internal Revenue Service and Health Savings Account rules
- Withdrawals are limited by the IRS to qualified medical purchases
- Debit Card available with no annual fee
- Early closure fee of $10 if the account is closed within 180 days of opening account
- Set up fee applicable
For more detailed information on an HSA, please check with a tax advisor.
- Qualifications
Qualifications
- Must be covered under a qualified, high deductible health plan
- Cannot be claimed as a dependent on another person's tax return
- Cannot be enrolled in Medicare
Contribution Limits
Contribution limits are set by the IRS. Current 2012 contribution limits are:
- $3,100 for a single person
- $6,250 for a family
- A person age 55 or older may make an additional $1,000 in "catch-up" contributions
