The Health Savings Account

What is a Health Savings Account (HSA)?

• An HSA is a tax-advantaged savings account, like an IRA, tied to a high deductible health insurance plan. The health savings account may be used to pay for deductibles, coinsurance and other qualified healthcare expenses (Section 213(d) of the Internal Revenue Code), on a tax-free basis.
• Unlike other types of health savings vehicles, HSA contributions and earnings carry over from year to year allowing you to build up your savings over time. If not used by age 65 you may also use the funds in your HSA to supplement your retirement income.
• Unlike most other employer sponsored savings plans, HSAs are portable and remain with you regardless of your employment status. You control your money.

Advantages of an HSA

• Tax-deductible Contributions: Contributions are tax deductible for individuals, the self-employed and employers.
• Tax-free: Withdrawals used to pay for qualified healthcare expenses are tax-free.
• Low Cost: Qualified HSA insurance plans cost less due to the high deductible regulations.
• Options: You also have the option of selecting from a variety of investment vehicles.
• Easy Access: If you select one of our recommended HSA banks/trustees/custodians, accessing your HSA savings is easy with a convenient Visa Check Card or checks that are included when you establish your HSA account.