Community Pride Bank offers Health Savings Accounts. They are a great tool to help with the high cost of healthcare and save money for health related expenses you may incur in the future. Give us a call to discuss a Health Savings Account today.
Health Savings Account (HSA) is a lot like an Individual Retirement Account (IRA), where you can save money in a tax-deferred manner to take care of future medical expenses. The primary difference is that funds used for qualified medical expenses are never taxed! And unlike a flexible spending account, if you don't use the money in your HSA by the end of the year, no problem. The balance simply rolls over and becomes available for the following year. You can continue adding money to your HSA as long as you are covered by an HDHP.
Frequently Asked Questions
Who can qualify for a Health Savings Account?
If you're covered by a high-deductible health plan (HDHP), not eligible for Medicare and can't be claimed as a dependent on someone else's tax return, you may be eligible for an HSA. Restrictions do apply.
How much can I contribute in a year?
For 2014, you can contribute your full amount up to $3,300 (individual coverage) or $6,550 (family coverage). These amounts will be adjusted for cost-of-living increases. Catch-up contributions are available for those age 55 through 64.
How does an HSA work?
It works just like a checking account, only for health-related expenses. You can add qualified contributions to it any time. Many times deposits can be arranged electronically through your employer. Then, simply access the funds by using your debit card or write a check for qualified medical expenses.
How many withdrawals do I get a month?
Withdrawals are limited to the balance in your account.
What is a qualified medical expense?
You are responsible to determine what a qualified medical expense is. A partial list is provided in IRS publication 502 (available at www.irs.gov).
Are dental and vision care qualified medical expenses under an HSA?
Yes, as long as these are deductible under the current rules.
Who will be the bookkeeper of my HSA?
It is your responsibility to keep track of your deposits and expenditures and keep all of your receipts.
What if I don't use the money in my HSA?
After age 65, unused HSA funds can be used for qualified medical expenses in retirement. Funds distributed for other purposes will be subject to income tax.
What are some other advantages?
You own and control the money in your HSA. You decide which expenses to pay from the account. You also decide how and where to grow your funds.