Health Savings Accounts

Open a health savings account (HSA) at Freedom Bank.

With a HSA, you can be prepared for unexpected medical expenses. You will also benefit from tax-deductible contributions and tax free withdrawals and earnings.

Benefits of a 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 coverage or employment

You are generally eligible for a HSA if you are:

  • covered under a High Deductible Health Plan (HDHP),
  • not covered by another non-HDHP (with limited exceptions),
  • not enrolled in Medicare, and,
  • not eligible to be claimed as a dependant on another person’s tax return.

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 covered 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 may consult a tax advisor to help you calculate the savings.

Open your health savings account with us today. Choose Freedom Bank. We are focused on you!