HSAs
A Health Savings Account (HSA) is a tax-advantaged account created for or by individuals covered under high deductible health plans (HDHPs) to save for qualified medical expenses. Contributions are made into the account by the individual or their employer and are limited to a maximum amount each year. The contributions are invested over time and can be used to pay for qualified medical expenses, such as medical, dental, and vision care and prescription drugs.
KEY TAKEAWAYS
- A Health Savings Account (HSA) is a tax advantaged account to help people save for medical expenses that are not reimbursed by high-deductible health plans (HDHPs).
- No tax is levied on contributions to an HSA, the HSA’s earnings, or distributions used to pay for qualified medical expenses.
- An HSA, owned by an employee, can be funded by the employee and the employer.
- Contributions are vested, and tax deductible (please confer with your tax accountant).
Health Savings Account Selections
| Name of Selection | Type of Account | Interest Earning % | Annual Percentage Yield % | Minimum Balance to earn APY/open |
|---|---|---|---|---|
| Health Savings Account 1 | Checking | .05 | .05 | $0.00/$50.00 |
| Health Savings Account 2 | Checking | .07 | .07 | $5000.00/%50.00 |
| Health Savings Account 3 | Checking | .10 | .10 | $10,000.00/$50.00 |
| DISCLOSURE | At our discretion, KeySavings Bank may change interest rates on all interest earnings accounts. Fees may reduce the earnings on all interest earning accounts. |
