Health Savings Accounts (HSAs) can provide great benefits!
What is an HSA?
One of the smartest financial moves you can make for the future can be a Health Savings Account. A Health Savings Account (HSA) is a tax-favored account used in conjunction with an HSA-compatible high deductible health plan. The HSA allows you to contribute funds on a pre-tax or tax-deductible basis, which you may use to pay for eligible medical expenses.
- $50 opening deposit requirement
- Interest paid
- Free HSA Debit card
- Free Online Banking and E-Statements
- Monthly fee of $2 if balance falls below $200
Who is Eligible for an HSA?
To be eligible and qualify for an HSA, you must meet the following requirements:
- You are covered under a high-deductible health plan (HDHP) on the first day of that month.
- You are not covered under another type of health plan that is not an HDHP (certain exceptions apply).
- You are not enrolled in Medicare (generally, are under 65 yrs. old).
- You may not be claimed as a dependent on another individual's tax return, excluding your spouse.
Tax Advantages of an HSA
There are plenty of advantages to a Health Savings Account. Funds rollover each year, there’s no “use it or lose it’ and the account is FDIC insured. But the biggest advantage is the tax savings.
Contribution Tax Benefits
Contributions to a Health Savings Account are tax deductible (subject to IRS annual limits). This means you can reduce your taxable income by the amount you contribute to your HSA.
Distribution Tax Benefits
Eligible medical expenses such as prescriptions or dental and vision care can be purchased tax-free when you use your HSA. You can also pay out-of-pocket for eligible medical expenses and then reimburse yourself from your HSA.
Earnings Tax Benefits
The interest on HSA funds grows on a tax-deferred basis. And, unlike most savings accounts, interest earned on an HSA is not considered taxable income when the funds are used for eligible medical expenses.
Contact us to learn more about HSAs.
Your Personal Financial Resource … we’re here for you!
Maple Bank offers a wide range of products and services designed to help you manage your personal finances. Choose the accounts that fit your needs, and take advantage of our convenient and value-added services that can help you save time and money. Whether you are paying your monthly bills, saving for the future, or borrowing money for an important purchase, Maple Bank has smart solutions. We hope to meet you soon!