Health Savings Account
A Health Savings Account (HSA) gives you more flexibility and control over your health care costs. That's because it empowers you to make your own health care decisions.
Use Pre-Tax dollars to pay for future medical expenses. You will be able to deduct your contributions to your Health Savings Account, and the account earnings will accumulate on a tax-deffered basis. Best of all, distributions from your HSA are tax-free if they are used for qualified medical expenses.
To open a Health Savings Account, you must select a high-deductible health plan. The deductible must be at least $1,250 for an individual plan and at least $2,500 for a family plan. The major advantage of a high-deductible plan is lower premiums.
To contribute to your Health Savings Account you must enroll in a high-deductible health plan before you can make HSA contributions. The maximum annual HSA contribution is the deductible under your high-deductible health plan, but the contributions for 2017 can not exceed $3,400 for an individual plan or $6,750 for a family plan. Your employer's contributions to your Health Savings Account are tax-free, and you can deduct your own contributions to your Health Savings Account on your income tax return.
Unlike contributions to a flexible spending account, the balance of your Health Savings Account at the end of the year is carried over to the next year. This means you are not placed in a position of having to "use it or loose it" each year.
The high-deductible health plan provides you with protection from catastrophic medical costs, and the Health Savings Account provides you with a source of funds to pay some or all of the costs not covered by the health plan. To be coordinated with a Health Savings Account in 2017, a high-deductible health plan cannot have out-of-pocket limits which exceed $6,350 for an individual plan or $12,700 for a family plan.
A Health Savings Account enables you to take control of your health care decisions, and since you are the owner of your HSA, it doesn't matter what your job status is or whether your employer makes contributions to your plan. Your Health Savings Account will always follow you.
To open a Health Savings Account (HSA) contact us at 860-547-0027 ext. 211 for personalized service.