Health Savings Accounts
A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into a Health Savings Account, including favorable tax treatment.
Contributions to your HSA can be made by you, your employer or both. However, total contributions are limited annually. If you make contributions, you can deduct the contributions (even if you do not itemize deductions when completing your federal income tax return).
In order to participate in a HSA, you must meet the following criteria:
- You must have coverage under a HSA qualified “High Deductible Health Plan”
- Federal law requires that the health insurance deductible must be at least $1,400 for self only coverage and $2,800 for family coverage.
- Annual out of pocket expenses under the plan (including deductibles, co-pays and co-insurance) cannot exceed $6,900 for self only coverage and $13,800 for family coverage.
- You may not be claimed as a dependent on someone else’s tax return.
- You can not be enrolled in Medicare.
- You can not be covered under any other non-HSA qualified insurance plan.
|Insurance Status||Tax Year||Full Contribution||Catch up for those over 55||Total Contribution|
|Single – Self Only||2020||$3,550||$1,000||$4,550|
Other advantages to the HSA include: security, affordability, flexibility, savings, control, portability, ownership and most importantly, tax savings. A HSA provides you with triple tax savings through:
- Tax deductions when you contribute to your account
- Tax free earnings through investment
- Tax free withdrawals for qualified medical expenses.
You can use the money in your account to pay for any qualified medical expenses permitted under federal tax law. This includes most medical care and services including dental and vision care.
Our competitive interest rates and no fee accounts have been a great solution for those individuals who qualify.