Health Savings Accounts (HSA)
A Health Savings Account (HSA) is owned by an individual to help save for future qualified medical expenses and retiree health expenses.
HSAs are used in conjunction with a high deductible health plan, and they allow you to take an active role in managing your health care costs while protecting yourself from a financial crisis in the event of a costly medical emergency.
Health insurance is an important issue for small business owners. These accounts allow employees who elect high deductible health plans to enjoy great tax savings over the years. Plus, there is no cost to you to offer these accounts.
- Summary
- Tax savings when you contribute to your account
- Tax-free earnings
- Tax-free withdrawals for qualified medical expenses
- No annual fees
- Earn dividends on balances
- Free balance alerts
- Free online banking with bill pay
- Free eStatements
- Easy access to funds with a FastCash & Check Card
- More Information
Contributions can be made to an HSA by you and/or your employer up to the maximum specified by law. 2010 limits are as follows:
- Single: $3,050
- Family: $6,150
Contributions can be pre- or post-tax dollars, and individuals 55 and older can also make additional catch-up contributions.
Who Qualifies for an HSA?
Any adult can open an HSA, provided they:
- are covered by a High Deductible Health Plan (HDHP)
- are not covered by other health insurance that is not an HDHP
- are not enrolled in Medicare
- cannot be claimed as a dependent on someone's tax return
Additional HSA resources are available at:
