A Health Savings Account (HSA) is the best way to set aside tax-free* funds to cover qualified medical expenses for you and your family. You, your employer, or your family members may contribute to your HSA, and because you own the account, you take it with you even if you change jobs.
- No minimum balance to open
- Contributions are tax free*
- Interest grows tax free
- Withdrawals are tax free when used for qualified medical expenses**
- Money rolls over year-to-year automatically
- Easy withdrawal access by check, debit, online, teller
- Must be covered under a qualified, high deductible health plan
- Must not have coverage by another type of health plan
- Cannot be claimed as a dependent on another person's tax return
- Cannot be enrolled in Medicare
*If contributions are made after income was taxed, the amount deposited is tax deductible.
**Withdrawals for non-qualified medical expenses are subject to income tax and a 10% penalty. The 10% penalty is waived for persons 65 and over or who have become disabled.