Health Savings Account (HSA) is a tax-deferred investment account, similar in many aspects to an IRA, and used in conjunction with a qualified high deductible health plan. Earnings grow on a tax-deferred basis. Contributions and earnings dollars may be withdrawn at any time, federal income tax-free, for qualified medical expenses. At age 65, or upon disability, you may make withdrawals from your HSA for any reason.
How to establish an HSA
An HSA can be established by an individual or sole proprietor of a business who is:
- Covered by a high deductible health plan (HDHP)
- Not yet enrolled in Medicare Part A or Part B
- Not listed as a dependent on another person’s income tax return
Contributing to an HSA
Business owners may want to consider Health Savings Accounts for their employees as part of a comprehensive health care plan.
- Minimum to open $50
- Tiered Interest rate for higher Balances
- Free Debit Card
- Free Internet Banking, Bill Pay, & Mobile Banking
- Interest credited monthly
- No per check charge