Health Savings Accounts (HSAs)
As employers continue to deal with today’s economic challenges, health insurance often becomes a casualty of the budget cuts. If you offer employees a High Deductible Health Plan (HDHP), you may want to tell them about the HSA opportunities available at Heritage Bank.
Or, if you’re a small employer without a group plan, a HDHP and HSA could be a good solution for your own health care needs. Here is an overview of Health Savings Accounts:
What is an HSA?
A Health Savings Account (HSA) is a tax-advantaged way to pay for healthcare expenses. Although it’s called a “savings” account, it actually functions as a checking account through the use of the following free features: Check Card access, Online Banking and E-Statements.
This FDIC-insured account makes it possible for customers to pay current medical expenses while also saving for future qualified medical and retiree health expenses. The money in this account (including interest paid on qualified balances) is yours to keep, even if you change plans or retire from the company sponsoring your HSA. Here is a summary of key benefits:
- Contributions made to an HSA are tax deductible.
- Withdrawals for qualified medical expenses are tax-free.
- Interest earned on this account is tax-free.
- You own, control and invest the money in your HSA.
- Unused funds are carried over from year to year without limit.
- Easy access through your Heritage debit card.
To participate in an HSA, you must be covered by a High Deductible Health Plan (HDHP). For more information, ask your employer or a Heritage Bank customer service representative.*
* Individuals entitled to Medicare benefits or those being claimed as a dependent are not eligible.
For a complete description and full disclosure of account details, please contact a Heritage Bank customer service representative.