Health Savings Account
Save for Medical Expenses
A Health Savings Account (HSA) can help you with copays, prescription costs, and other out-of-pocket medical expenses. Contributions are usually tax-free* and can be deposited directly by your employer. Your account balance can roll over annually – giving you flexibility to save for future medical needs. To be eligible, you must participate in a qualified high-deductible health insurance plan; cannot participate in any other health plan that’s not a high-deductible health plan; cannot be enrolled in Medicare; and cannot be claimed as a dependent on anyone else’s tax return. Annual contribution limits apply.
HSA Benefits:
- HSA contributions are made pre-tax lowering your taxable income and you don’t pay taxes on the account’s growth*
- Annual rollovers eliminate worry about using or losing your savings
- Withdrawals for eligible expenses are tax free*
- Once you reach age 65 and are enrolled in Medicare, you can no longer contribute, but you can still make withdrawals for medical expenses paid out of pocket
- No required distributions at age 70 ½ like other retirement accounts