Health Savings accounts (HSAs) are tax favored savings arrangements for individuals covered by high deductible health plans (HDHPs).  With HDHP coverage, an individual must pay for a certain amount of medical expenses before the HDHP begins to pay any medical expense.  In exhange for paying a certain amount upfront, indiviudals enjoy less expensive iinsurance premiums.  Individuals can use the money they save in an HSA to pay for medical expenses incurred by themselves, their spouses, or their dependents.

Who is eligible for an HSA?

You are eligible for any month if you:

• are covered under an HDHP on the first day of such month
• are not also covered by any other health plan that is not an HDHP (with limited exceptions)
• are not enrolled in Medicare
• are not eligible to be claimed as a dependent on another person's tax return.

What are the benefits of an HSA?

• Your contributions are tax-deductible
• HSA contributions made by your employer is excluded from your income
• HSA earnings are tax-deferred
• If used for qualified medical expenses, HSA assets are tax-free
• Members may use their HSA assets for retirement with restrictions
• HSA assets become the property of a named beneficiary or of the HSA owner's estate upon an HSA owner's death.

Why not call or stop by our office for a free brochure explaining some of the details!