H.S.A.'s
What is a HSA - Health Savings Account?
- An HSA is a savings account at the bank.
- An HSA contain funds that are owned and controlled by you, the account holder.
- HSA savings rollover every year, you don't lose it.
Health Savings Accounts:
HSA's are designed for consumers to pay for upcoming medical expenses.
HSA can be funded with “pre-tax dollars”.
Funds grow “tax-free” while in the HSA account.
Funds can be withdrawn "tax-free" for qualified medical expenses.
Qualified Medical Expenses include your out-of-pocket expenses for copays, deductibles, prescriptions costs, over the counter
drugs, dental care and or vision care. Funds can also be used for COBRA premiums during periods of unemployment. Your funds can be used for medical expenses after retirement and include
long-term care expenses.
Here is a list of QME's approved by the IRS. click here
Additional HSA Information:
- Contribute up to $4,400 individual / $8,750 family in 2026
- Catch-up Contributions: Additional $1,000 if you are age 55+
- Monies roll from year to year
- Access H.S.A. funds through a debit card, checkbook or online transfer.
- Contributions can be changed anytime throughout the year
- Some banks charge a monthly administration fee for all active, eligible account holders
- There is a 20% IRS penalty for non-qualified withdrawals.
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