A Healthy Partnership
What if your health and finances could work together? Keep your pocketbook in peak condition with a Health Savings Account (HSA) from Hometown Community Bank! With an HSA, you can save tax-free today to prepare for tomorrow’s medical expenses.
How does a Health Savings Account benefit you?
A health savings account is a personal savings account specially designed for individuals with a high-deductible health plan. When funds are used for qualified medical expenses, contributions are tax-deductible*! This specific savings account allows you to pay for qualified medical expenses as you incur them.
To qualify for an HSA, an individual must:
- Be enrolled in a High Deductible Health Plan (HDHP)
- Not be covered under another non-HDHP
- Not be enrolled in Medicare
- Not be eligible to be claimed as a dependent on another’s individual tax return
What medical services/expenses qualify?
Qualified medical expenses are generally those that qualify for medical expense tax deductions, including amounts paid for doctors’ fees, prescriptions, and certain vision care.
The IRS Publication 502 contains a partial list of qualified medical expenses.
Hometown Community Banks recommend seeking professional advice from your trusted tax advisor for details concerning your specific situation.
How are funds accessed?
Funds may be accessed with your free HSA debit card or checks.
Is there a maximum contribution to an HSA account?
2020 IRS Annual Contribution Limits include: $3,550 for individual health plans or $7,100 for family health plans.
HSA Quick Facts:
- End of year balance rolls over for future use
- Covers medical expenses incurred by the HSA owner, spouse, & dependents
- Earn a competitive tax-free interest rate**
- Additional $1,000 catch-up contribution (Ages 55+)
- Assets stay with the HSA owner—even if place of employment and/or health insurance changes, or you enroll in Medicare
- Free online banking and e-statements
- Low $25 annual fee
* When used for qualified medical expenses. Consult a tax advisor.
** Annual contribution limits are set by the IRS. Consult a tax advisor.