Health savings accounts are used to save money for future medical expenses.
A health savings account (HSA) is a tax-free account that lets you save and pay for your health care expenses.
What are the potential advantages of health savings accounts?
- You decide how much money to set aside for health care costs.
- And you can add money to the account until the tax-filing deadline for the previous year's contributions.
- You control how your HSA money is spent. You may spend the HSA money tax-free on out-of-pocket medical expenses, such as your deductible, co-payments for medical care and prescription drugs, or bills not covered by insurance, such as vision and dental care.
- You own the money in your HSA account. Your employer may contribute to your HSA, but you own the account and the money is yours even if you change jobs.
- Any unused money at the end of the year rolls over to the next year. Unlike with a flexible spending account, you don’t have to use the money by the end of the year—it can grow tax-deferred in your account for later use. There’s no deadline for making a withdrawal.
- No taxes are taken out of the money you contribute to the HSA, the interest you earn, or the withdrawals that are eligible expenses You don't pay taxes on money going into your HSA.
Let Heritage Bank help you start taking advantage of the benefits a Health Savings Account can offer. Call us - or come by - today!