A Health Savings Account (HSA) is a type of tax-advantaged savings account that is exclusively used to pay for qualified medical expenses.
In order to contribute to an HSA, you must meet the following eligibility requirements:
- You must be covered by a high deductible health plan.
- You must not be covered by another general coverage medical plan or Medicare.
- You must not be eligible to be claimed as a dependent.
- You must not have received VA medical benefits in the previous three (3) months.
The money in your HSA can be used for copayments, deductibles, and bills that are not covered by insurance, including vision and dental care expenses. All withdrawals from your HSA that are used for qualified medical expenses are tax-free.
- All contributions are tax-free and tax-deductible. Earnings are tax-deferred, and distributions are tax-free if used for qualified medical expenses. All interest earned on the account is tax-free as well!
- Because HSAs are yours and not tied to an employer, you can take the account with you in the event that you change jobs.
- HSA contributions roll over year after year. That means you don’t have to use the funds in the same year you put them in.
Interested in your own HSA? For more info, or to open an HSA with us, give us a call at 412-269-3011 or stop by your local financial center.