Health Savings Account

HSA Benefits

• Contributions excluded from gross income
• Tax-deferred interest earned on balance
• Tax-free distributions if used for qualified medical expenses
• Contributions remain in your account – year to year
• HSA is portable – stays with you if you leave your employer or work force
• At age 65, balance is considered a “savings” account; withdrawals are taxable but may be used for any purpose
• If spouse is named beneficiary upon death, it transfers to your spouse as an HSA
• Minimum balance of $100 to open
• Earns interest at Money Market Savings interest rate until balance reaches $10,000 or greater, then changes to 1year CD rate
• Monthly statements
• Automatic monthly transfers available from your checking/savings accounts to your HSA
• Monitor your HSA via Internet Banking
• FDIC insured
• Department of Treasury Link for more information:
  www.treas.gov/offices/public-affairs/hsa/faq basics.shtml