Business Health Savings Account (HSA)

Employee Details

• Greater personal control over healthcare management and expenses
• Prepare for qualified medical expenses
• Earn competitive interest on entire balance¹
  • Interest is compounded monthly
• Receive higher rates on larger deposits
• An HSA provides triple tax savings:
  • Tax deductions when you contribute to your account
  • Tax-free earnings through investment
  • Tax-free withdrawals for qualified medical, dental, vision expenses, and more²
• Additional personal contributions may be made, tax-free
• Funds can be withdrawn at any time³
• No monthly service fee
• No minimum balance requirements
• Unused funds remain in account
• Keep your HSA in your name, regardless of career or life changes
• Federally insured by FDIC
• $50 minimum deposit to open 

Company Details

• Provide great benefit to employees
• Helps retain and attract good employees
• Contributions are tax deductible²
• Reduced insurance premiums
• Little administrative burden

Transaction Limitations

• Withdrawals are limited by law³
• Please see your tax accountant for details 

Contribution Limits

An eligible individual who is age 55 or older may make additional HSA contributions (called catch-up contributions) up to $1,000 annually and may continue to make catch-up contributions until enrolled in Medicare

You may contribute to your HSA until the tax return due date which is typically April 15th.

Non-Qualified HSA Distributions

HSA distributions not used for qualified medical expenses are subject to ordinary income tax and if taken before age 65, a 20% IRS penalty tax could result if not used for qualified expenses.  

Qualified HSA Distributions

Funds held in an HSA account may be used for qualified medical expenses as defined in United States tax law. These expenses include the majority of medical, vision, or dental expenses. Additionally, although HSA account balances cannot be used to pay health insurance premiums, they may be available to be used to pay qualified long-term care premiums after age 65. 

Please be aware that any funds withdrawn from an HSA account that are not used for qualified medical, vision, or dental purposes are typically subject to ordinary income tax. If taken before age 65 they are also subject to a 20% IRS penalty unless due to a disability or death.