Health Savings Accounts
Health Savings Accounts (HSAs) were created by the Medicare bill signed by President Bush on December 8, 2003 and are designed to help individuals save for future qualified medical and retiree health expenses on a tax-free basis. For more information on HSAs, visit the U.S. Treasury Department website.
Use Pre-Tax Dollars for Medical Expenses
Contributions to your HSA are tax-deductible and earnings will accrue on a tax deferred basis. Distributions from your HSA are tax-free as long as they are used for qualifying medical expenses. Any balance remaining at the end of the year is carried over the next year. Therefore, you never have to worry about losing money at the end of year.
Advantages of Managing Your HSA
You’re in control of your healthcare decisions. You decide how and when to spend the money within government guidelines. And since you’re the owner of the account, it will always follow you. Basically, you can use it for any medical expense - dental, vision, prescriptions and even over-the-counter drugs like aspirin. And with the free checks and debit card, we make it easy for you to pay.
Health Savings Accounts Coverage and Contributions
- 2014 Employee-Only Coverage | Your health plan must have a deductible of at least $1,300. Annual contributions to an individual HSA cannot exceed $3,350.
- 2015 Family Coverage | Your health plan must have a deductible of at least $2,600. Annual contributions to a family HSA cannot exceed $6,650.
- 2015 Contributions | Contributions for the 2015 tax year may be made from 1/1/15 through 4/15/16.
- 2014 Contributions | If your qualifying health plan was active during 2014, contributions may be made through 4/15/15.
Contact our Prosperity Branch for more information about Health Savings Accounts.