Health Savings Account (HSA)
What is an HSA?
An HSA is a tax-exempt personal savings account that you set up with The Equitable Bank to pay or reimburse certain medical expenses you incur. To qualify you need a health plan with a high deductible.
How does an HSA work?
Health Savings Accounts work similar to an Individual Retirement Account (IRA), except that deposits and qualified withdrawals are tax-exempt.
- Individuals and their employers may deposit money into the HSA up to an annual dollar limit with extra catch up contributions allowed for those age 55 to 65.
- Account balances can be used to pay for a wide array of medical expenses, including some ordinarily uncovered by insurance.
- Health Savings Accounts can also be used to cover family members not covered by a high deductible plan.
Tax Deductions
An HSA's account deposits may be deductible from taxable income even if you do not itemize deductions on your tax return. Self-employed individuals may also be able to deduct the insurance premiums.
Why consider a Health Savings Account?
- Protection: Covers you and your family in case of high or unanticipated medical expenses.
- Savings: Tax advantages and a tiered rate of interest earned provide an opportunity to save for the future.
- Flexibility: Schedule regular contributions or make your own contribution at any time during the year, up to April 15th of the following year.
- Mobility: You own the account so it goes with you if you change jobs or retire.
- Choice: You pick the physician or health care professional to see what treatments are right for you.
- Control: You decide how to spend your health savings account dollars.
What can your HSA be used for?
- Medical Care and Services
- Dental and Vision
- Prescriptions
- Over the Counter Medications
- Chiropractic Visits
- Acupuncture
Contact your nearest Equitable Bank for more information and to sign-up today.
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