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Health Savings Account

Learn more about the advantages of a Health Savings Account (HSA).

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Our Health Savings Account (HSA) is a tax-exempt custodial account set up to pay or reimburse certain medical expenses you incur.

Medical spending must meet eligibility requirements outlined by your High Deductible Health Plan. You may choose to consult a tax advisor before the opening of an HSA.

Advantages of an HSA

HSA Owners:

  • Set aside money to pay for out-of-pocket medical expenses
  • Carry over balance from year to year
  • Pay qualified medical expenses with pretax dollars
  • Lower premium costs
  • Control HSA account
  • Use for retirement

HSA Tax Advantages

  • Contributions reduce federal income taxes
  • Contributions made through an employer’s cafeteria plan are not subject to FICA, FUTA, or railroad retirement taxes
  • In most states contributions reduce income taxes
  • Earnings on the HSA grow tax-deferred
  • Distributions from HSAs are tax-free, when made for qualified medical expenses
  • Employers that make contributions to their employees' HSAs can save on federal taxes, FICA and FUTA taxes, and possibly state taxes. The contribution is not included in employees' income.