| Health Savings Account |
Health Savings Accounts (HSAs) are a great way to help plan for increases in health care costs. HSAs, partnered with a High Deductible Health Plan (HDHP), have many benefits for both employers and employees. Our trained professionals will walk you through the process.
Account Information
HSAs are special checking accounts designed to pay for only medical expenses. The account holder may choose to use checks or a free Debit Card to access the funds. Online banking and bill payment services are also available.
Requirements
Four main requirements must be met before someone may to contribute into an HSA.
1. Covered by an HDHP
2. Generally not covered by another non-HDHP
3. Not enrolled in Medicare
4. May not be claimed as a dependant
Employee/Account Holder Benefits
Ability to carry over balances – Funds do not have to be used during the calendar year in which they are contributed. Unused funds may be carried over year after year.
Portability of assets – HSA accounts can move with you in case of a change in employment.
Tax Deductible Contributions – Contribution amounts qualify as deductions on your tax return.
Tax Free Withdrawals – Disbursements for qualified medical expenses are not taxed.
Tax Free Earnings – Interest earned in an HSA is not taxable.
Employer Benefits
Lower Health Insurance Costs – Premiums are lower with HDHPs.
Tax Deductible Contributions – Contributions made into an employee’s HSA by the employer are tax deductible for the employer.
Additional Employee Benefit – Offering this affordable solution increases the ability to attract and retain employees.