Health Savings Accounts
Health Savings Accounts were created in response to
the rising health insurance premiums. It is a special account owned by
an individual where contributions to the account are to pay for current
and future medical expenses.
Contributions to an HSA are federally tax deductible,
the earnings grow tax deferred, and distributions for qualified medical
expenses are tax free.
You are eligible to make or receive regular
contributions if, in any month, you:
-
Are covered under a high-deductible health plan
(HDHP) on the first day of such month (see your health insurance agent
for qualifying HDHP)
-
Are not covered under another type of health plan
that is not an HDHP (with some exceptions)
-
Are not entitled to benefits under medicare
-
May not be claimed as a dependent on another
individuals tax return
Contributions to HSA can be made by the employer or
the individual. Maximum amount that can be contributed to an HSA from
all sources = lesser of:
For individuals age 55 and older, additional
“catch-up” contributions to HSA allowed
-
2008 - $900
-
2009 and after - $1,000
Other resources:
US Department of Treasury
For more details, contact a
personal banker.
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