Health Savings Accounts
A Health Savings Account (HSA) is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSA’s enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
- Allowing contributions that are not used for current medical expenses to be carried over subsequent years and used tax-free for future medical or retirement health expenses.
- Create an additional source of taxable retirement income if HSA assets are not used for qualified health care expenses.
- Providing asset portability so individuals can take their HSA wherever they go.
- Offer a lower priced health care option, if the individual shares the cost of health insurance with their employer
- Anyone covered under a High Deductible Health Plan (HDHP) on the first day of the month in which the HSA is established.
- Not covered by any health plan that is not a HDHP.
- Not enrolled in Medicare.
- Not eligible to be claimed as a dependent on another individual’s tax return.
If you have any questions regarding health savings accounts, please consult with a Financial Service Representative at your local Bank of Sullivan branch.