Health Savings Account (HSA)
No matter where you lie on the health care debate, an HSA is always a great idea. It helps you save for future medical expenses, earn interest, and gain valuable tax advantages. You own and control the money in your HSA, no matter if you change employers or insurance. Access to funds is simple, available by check, online banking, or a complimentary Visa® debit card.
- High interest account, rates based on balance
- Interest earned on entire balance
- Earnings and withdrawals are tax free if used for qualified medical expenses
- Contributions (including those from employer) are excluded from income
- $1.75 monthly service fee waived with $2,500 balance
- One-time account setup fee of $20
- Must have a high deductible health plan (HDHP) to open
- All tiers require a $50 deposit to open
- FDIC insured
Important Note: The information contained in this section is not intended to provide specific advice or recommendations for any individual. We suggest that you consult your financial advisor.
You must have a high deductible health plan (HDHP) if you want to open an HSA. Sometimes referred to as a "catastrophic" health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn't pay for the first several thousand dollars of health care expenses (i.e., your "deductible") but will generally cover you in full after that. Of course, if you have an HSA, your HSA is available to help you pay for the expenses your plan does not cover.
- More HSA Info
Qualified Medical Expenses
A common question is what counts as a qualified medical expense. HSA funds retain their tax-free status if they are used for the following expenses:
- Doctor and dentist visits and most medical procedures*
- Transportation to receive medical or dental care
- Healthcare coverage if you are unemployed
- Long-term care insurance
- Certain continuation-of-benefit charges
- Health insurance plans that qualify after age 65
*For a full list of qualified medical expenses as defined by the IRS, please visit the U.S. Department of Treasury website.
The maximum contribution limits for 2013 are:
- $3,250 for a single policy
- $6,450 for a family policy
- Ages 55+ may make additional $1,000 "catch-up" contributions
More information is available at http://www.treasury.gov/resource-center/faqs/Taxes/Pages/Health-Savings-Accounts.aspx
Each Solvay Bank branch office has a dedicated HSA Account Specialist. Use the "Apply Now" or "Questions" buttons above to get started.
To transfer an existing Health Savings Account (or Archer Medical Savings Account) from another institution to Solvay Bank, use our Request for Transfer form.