Health Savings Accounts (HSAs) are tax-favored accounts specifically designed to help you pay medical expenses for yourself, your spouse, and your dependants if you are covered by a high-deductible health plan (HDHP).
An HDHP is a health insurance plan that offers lower premiums in exchange for a higher deductible. If you are covered by an HDHP, then you can save by contributing money to a HSA, which you can then use to pay your medical expenses as they arise.
BENEFITS OF A HSA:
| HSA Contribution Limits |
| |
Individual Coverage |
Family Coverage |
| 2012 |
$3,100 |
$6,250 |
| 2013 |
$3,250 |
$6,450 |
If you are age 55 before the end of the taxable year, you may contribute $1,000 more as a “catch-up” contribution. Both contribution limits are subject to potential cost-of-living increases.
- Contributions are tax-deductible
- Contributions made by an employer are excluded from income
- Earnings are tax-deferred
- Never taxed if used for qualified medical expenses as defined by the IRS
- Balances "roll over" each year if unused
- Unused balances may supplement retirement**
FEATURES:
Current Rates
| Balance |
Rate |
APY~ |
| Less than $2,499 |
.15% |
.15% |
| $2,500-$9,999 |
.15% |
.15% |
| $10,000-$24,999 |
.15% |
.15% |
| $25,000-$49,999 |
.15% |
.15% |
| $50,000-$99,999 |
.15% |
.15% |
| $100,000 and up |
.20% |
.20% |
Minimum to open: $50
New account set-up: $10 (one-time)
Monthly service charge: $3
$5 return mail fee (per returned statement with incorrect address)