Health Savings Account (HSA)

 

Manage your money for the benefit of your health.

What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a personal, tax-advantageous savings account which you may use to help pay for future qualified healthcare expenses for you and your family. It works in conjunction with a High Deductible Health Plan (HDHP).

What is a High Deductible Health Plan (HDHP)?

According to the IRS, a qualifying HDHP has a minimal annual, in-network deductible of $1,300 for single coverage, $2,600 for family coverage. Please check with your employer to see if they offer a qualifying HDHP.

What are the tax benefits of an HSA?

  • The money you contribute may be pre-tax or tax deductible (please speak with your accountant).
  • The interest earned on the money in your account is tax-free.
  • When you use the funds to pay for qualified medical expenses, those withdrawals are also tax-free.

Who can contribute to an HSA?

Both you and your employer may contribute to your HSA. Other qualified family members may also contribute to the HSA for you, so long as they meet the IRS guidelines. In order to make contributions, an adult must have the following:

  • Have coverage under a qualified High Deductible Health Plan
  • Have no other primary medical coverage
  • Are not enrolled in Medicare
  • Cannot be claimed as a dependent on someone else’s taxes

How does an HSA work?

You simply deposit your funds into an interest-bearing account here with TruPoint Bank through either payroll deduction (pre-tax), or by mailing in a check (post tax). You may then use those funds to pay for qualified medical expenses below your insurance deductible, as well as co-insurance requirements after your deductible is met, and even qualified expenses not covered by your health plan. Unused funds simply roll over into the next year. You never lose your HSA contributions; they just keep accumulating and earning interest. Your money is ready whenever you need it, today or some point in the future.

How much can I contribute to my TruPoint Bank HSA in 2018?

  • You may contribute the annual maximum amount as determined by the IRS. (The maximum for 2018 is $3,450 for individuals and $6,900 for families.)
  • If you are over the age of 55 and up to Medicare entitlement age, you may contribute an extra $1,000.
  • Your employer may roll over funds from your HRA or FSA account once, according to the rules established by the IRS.

To learn more about a TruPoint Bank Health Savings Account, please visit one of our offices near you or give us a call at (276) 935-8161. We’ll be glad to answer any questions and help educate you about this great product.

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