Health Savings Account
If you have a high deductible health insurance plan, you could qualify for a Health Savings Account (HSA). HSA's are designed to help individuals and families save for qualified medical expenses on a tax-free basis. HSA's work like an IRA for healthcare. Contributions and interest are tax-free. Despite being called a savings account, a HSA is technically a checking account that earns interest.
- Save Money: Contributions can be tax-deductible. Distributions are tax-free if being used for qualified medical expenses. **
- Earn Money: Offers competitive interest rates.
- Low, one-time setup fee of $14.00
- Low minimum opening deposit of $100.00
- $3.00 monthly service charge
For further details and to see if you qualify for a HSA, contact the NebraskaLand National Bank location nearest you.
What is a Health Savings Account?
A HSA is money put in an account owned by an individual to pay for future qualified medical expenses.
How does a HSA work?
A HSA works like an IRA, except the money is used to pay for qualified health care costs. Money deposited into the account is tax-deductible and is used to pay for current and future qualified medical expenses. Interest earned is tax-deferred. Unused balances rollover from year to year.
Who can qualify?
Anyone with a high deductible health insurance plan is eligible for a HSA provided they are not covered by another health insurance plan, entitled to Medicare or can’t be claimed as a dependent on someone else's tax return.
**Health Savings Accounts are subject to eligibility requirements and restrictions on deposits and withdrawals to avoid IRS penalties. State taxes may apply. Consult a tax adviser with questions.
Do you still have questions? Take a look at our blog post on HSAs or contact a Personal Banker by clicking the button below.