What is a Health Savings Account (HSA)?
An HSA is a tax-favored savings account for individuals and families covered by a high-deductible health plan (HDHP). Contributions to an HSA are tax-deductible and distributions are tax-free if used for qualified medical expenses.
Can anyone open an HSA?
No. In order to be eligible for an HSA, you must be covered by an HDHP on the first day of the month. You cannot be covered by any other health plan that is not an HDHP, and you cannot be enrolled in Medicare. You are also not eligible for an HSA if you can be claimed as a dependent on someone’s tax return.
What are the benefits of an HSA?
An HSA* can save you money. Not only will you receive tax benefits for qualified distributions from your account, but you will also receive tax benefits similar to those of IRA-type accounts.
• Deposits are tax-free
• Investment earnings grow tax-free
• Withdrawals are tax-free when used for qualified medical expenses
• Take your HSA with you if you change jobs
• Available to almost anyone covered by a high-deductible insurance plan
How much can I contribute to an HSA?
For 2024, the contribution limit is $4,150 for single coverage or $8,300 for family coverage. If you are over age 55, you can make a $1,000 “catch-up” contribution as well.
For more information about Health Savings Accounts talk to your personal banker.
Does your business offer HSA’s?
While you’re looking at your next fiscal year consider giving the gift of health savings! Learn more about enhancing your employee’s benefits package by speaking to a personal banker.
*Health Savings Accounts are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Consult a tax adviser with questions.