Health Savings Account
A Health Care Plan
Combining
Cost Savings with Flexibility
A Health Savings
Account (HSA) gives you more flexibility and control
over your health care costs. That's because it allows
you to make your
own health care decisions.
Use pre-tax dollars
to pay for future medical expenses
You will be able to deduct your
contributions to your HSA, and the account
earnings
will accumulate on a tax-deferred basis. Distributions
from your HSA are
tax-free if they are used for qualified medical
expenses.
Opening your HSA
To open an HSA, you must select a
high-deductable health plan. The advantage
of a high-deductible plan is lower premiums.
Contributions and plan deductible
limits change frequently so consult your tax
professional
regarding your individual circumstances.
Account balance is
carried over
Unlike contributions to a flexible spending account,
the balance of your HSA at the end of the
year is carried over to the next year. Therefore you are
not placed in a position of having to
"use it or lose it" each year.
Protection from catastrophic
medical costs
The high-deductible health plan provides you with
protection from catostropic medical costs,
and the HSA provides you with a source of funds to pay
some or all of the costs not covered by
the health plan.
Control and flexibility
An HSA enables you to take control of your health
care decisions. Since you are the owner
of your HSA, it doesn't matter what your job status is
or whether your employer makes contributions
to your plan. Your HSA will always follow you.
Dividend rate paid: (Click
here for rates page)
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