A Health Savings Account is a tax-advantaged medical savings account available to taxpayers who are enrolled in a High Deductible Health Plan.
The funds contributed to an HSA are not subject to income tax, but can only be used to pay for qualified medical expenses for yourself, your spouse, and your dependents. The excess funds are allowed to roll over from year to year and remain yours.
To qualify for a Health Savings Account you must:
- Be insured under a High Deductible Health Plan
- Not be insured by any other health plan
- Not be enrolled in Medicare
- Not be claimed as a dependent on another person's tax return
A Health Savings Account at People's Savings Bank:
- Requires only $50.00 to open an account
- Allows deposits by employee or employer
- Allows direct deposits
- Gives access to funds by check or debit card
- Includes unlimited debit card transactions
- Provides the first 50 checks for free
The benefits of a Health Savings Account include:
- Tax savings
- Earned interest
- Portability
- Long-term savings
