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Health Savings Account What is a Health Savings Account? Health Savings Accounts (HSAs) combine high deductible health insurance with a tax sheltered savings plan. Money from the savings plan can be used for most medical expenses or in meeting your annual deductible. HSAs can reduce health insurance premiums and enable the insured to build up funds to pay out of pocket expenses for small and routine expenses. Federally qualified HSAs are tax-deductible, tax-deferred, and tax-free. Contributions Contributions to your HSA can be made by either the employer or the employee. All contributions are tax-deductible to the lesser of 100% of the deductible or to the IRS maximum of $3,050.00 for single coverage and $6,150.00 for family coverage for the year 2010. Eligible Expenses An eligible expense is defined as those expenses paid for as described in Section 2 of the Internal Revenue Code. Additionally, the IRS has allowed non-prescription drugs as described in Rule 2003-102, 2003-38 I.R.B. 559. Professional Bank, N.A. is not engaged in rendering tax advice. For more information, please see IRS Publication 502 titled, Medical and Dental Expenses, catalog number 15002Q. If tax advice is required, seek the services of a tax professional. Details of the Plan • Minimum balance to open $50.00 or a direct deposit arrangement
Additional Information If you would like to conduct more research on the subject of Health Savings Accounts, we suggest you look at these websites:
www.treasury.gov/offices/public-affairs/hsa/ |
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