Health Savings Accounts
Health Savings Account, or HSAs, were created by Congress to combat rising medical costs.
An HSA is an IRA-like account that is designed exclusively for covering medical expenses incurred by the HSA account beneficiary (the person who establishes the account) and his or her dependents.
HSAs are available to individuals covered by a high deductible health plan (HDHP) regardless of whether the person is self-employed or employed by a small employer and regardless of whether their employer maintains the HDHP.
An HDHP is an insurance policy that meets certain dollar limits as shown in the table below.
2018 HDHP Limits**
$1,350 or more
$2,700 or more
Annual Deductible plus out-of pocket expenses cannot exceed.....
*APY= Annual Percentage Yield. APY is accurate as of 1/2/2018. Rates subject to change without notice. Call for current rates. Penalty for early withdrawal. The APY assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings. Fees could reduce earnings. The rate may change after account is opened.
**HDHP and contribution limitations are revised each year to reflect cost-of-living increases.
HSAs can provide significant tax benefits to eligible individuals.
HSA contributions - by employer or employee - are excluded from income.
HSA earnings are tax-deferred.
If used for qualified medical expenses, HSA assets are never taxed.
To learn more about how to take advantage of the many HSA benefits, contact us for more details.
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