An Individual and Family Health Savings Account (HSA) is a pre-tax contributed, supercharged flexible medical care spending account that can serve as an extra retirement-savings fund. First Southwest Bank provides HSAs to individuals with a high deductible health plan. Having a hard time deciding if an HSA is the right fit for you?
Here are a few commonly asked questions regarding these accounts:
What exactly is an HSA?
It is a pre-tax savings account that you can use to save money for health care and medical out-of-pocket expenses that wouldn’t typically fall under your deductible. Covered expenses include but aren’t limited to doctor’s fees, dental services, eye exams, fertility services, hearing aids, hospital services, urgent care visits, lab fees, surgery, therapy or counseling, acupuncture and more.
What are the benefits?
The primary benefit of an HSA is that you can put money into the account before it is taxed. The interest gained on your money in an HSA is also tax-free. Unlike traditional health insurance plans, your HSA account stays with you as you transfer employment. Money you don’t use in your HSA account can roll over from year-to-year, and if you’re over the age of 65, you can use the funds for any purpose without a penalty. We personally recommend consulting with your CPA for full tax ramifications.
Do I qualify?
If you have a qualified High Deductible Health Plan (HDHP) through your employer, your spouse, or one you’ve purchased on your own, you can probably open an HSA. Whether or not your plan is HSA eligible will be stated in your policy. You may not be enrolled in Medicare or claimed as a dependent on someone else’s tax return.
Okay, so I want to open an HSA…What are the next steps?
Visit your local First Southwest Bank branch where you can complete the application. You will need to bring a current insurance card and policy showing that the policy is eligible, a current photo ID for all signers.