Health Savings Account
| Minimum Earning Balance | Pay Frequency | Annual Percentage Yield |
|---|---|---|
| $0.00 and up | Monthly | 0.55% |
A Health Savings Account account is a tax-advantaged savings account designated for covering medical expenses. HSAs enable you to pay for current health expenses and save for future medical and health expenses on a tax-free basis. Unused balances may be carried over from year to year.
• Savings account with interest earnings
• Tax-deductible contributions*
• Tax-Deferred earnings*
• Tax-free withdrawals (if used properly)*
• Balance carries over from year to year
Balance Requirement:
Minimum Opening Deposit – $50
Minimum Balance to Earn Stated APY $0
Balance Method – Daily Balance
Interest Rate/Annual Percentage Yield
Rate as stated in current Rate Schedule
Interest Compounded – Monthly
Interest Credited – Monthly
Account Access
Visa debit card transactions (Free)
Check writing (Free)
eBranch (online – web access & mobile) (Free)
Monthly statements (electronic or paper) (Free)
Service Fees
$0 set-up
$0 per month
HSA contributions must be made by your tax return due date, and generally are tax-deductible. The maximum amount you (and/or your employer) can contribute to your HSA each year depends on if you have self-only or family coverage. Also, if you are age 55 before the close of a taxable year, your contribution limit increases by $1,000 for the annual catch-up contribution.
You can withdraw money from your HSA tax-free if the money is 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 health plan premiums.
Use your HSA money for medical expenses now or in retirement. Keep in mind that HSA distributions not used for qualified expenses are subject to ordinary income tax and a 20% IRS penalty tax if taken before age 65 (unless due to death or disability). There is no additional tax on distributions made after the date you are disabled, reach age 65, or die.
For more information please visit these two sites from the IRS:
HSA and Other Tax-Favored Health Plans
Medical and Dental Expenses
Content — © 11/2010 Ascensus, Inc.
*Consult a tax adviser