Wondering if a Freedom Bank Health Savings Account (HSA) is right for you?
Freedom Bank knows the rising cost of health care is an important concern to the people in our community. In an effort to help relieve some of the issues associated with these increased expenses, Freedom Bank is proud to offer Health Savings Accounts. With a qualified High Deductible Health Plan (HDHP) you pay lower premiums but higher deductibles. You (and/or your employer) fund your HSA to pay or reimburse qualified medical expenses not covered by your plan. Plus, you still have protection against high or potentially catastrophic medical expenses.
Using your Freedom Bank HSA
HSA distributions are tax-free when used to pay qualified medical expenses as permitted under federal tax law. This includes most medical, dental and vision care, but generally does not include medical insurance premiums. You can pay medical expenses for yourself as well as your spouse and any dependents, as long as they are by the HDHP.
But what if you don’t use your HSA money?
The money in your HSA account is always accessible! You can use the funds in the account however you wish. If not needed for medical expenses, you might build the HSA for retirement. HSA distributions not used for qualified medical expenses, however, are subject to ordinary income tax and a 10 percent IRS penalty if taken before the age of 65 (unless due to death or disability).
You might want to consult a tax advisor to help you calculate the savings.
Benefits of an HSA
- Savings Growth-savings tool with investment growth
- Flexible-pay current medical expenses to save for future needs
- Tax savings-tax-deductible contributions, tax-deferred earnings, tax-free withdrawals (if used properly)
- Ownership-HSA funds carry over from year to year
- Portable-your HSA stays with you, regardless of change in covereage or employment
You are generally eligible for an HSA if you are:
- covered under a High Deductible Health Plan (HDHP),
- not covered by another nonHDHP (with limited exceptions),
- not enrolled in Medicare, and,
- not eligible to be claimed as a dependant on another persons tax return.