To Your Health!
Health expenses often increase as we age, and according to a recent study by the American Journal of Public Health1, almost two-thirds of bankruptcies in our country are caused by a major medical event.
While any savings account is a great way to prepare for the unexpected, a Health Savings Account, or HSA for short, is a special account that lets you save for eligible current and future medical expenses. The IRS website puts out a publication that outlines what types of medical expenses are eligible. Get it by clicking here.
Do You Qualify for a Health Savings Account?
This type of savings account is available to those who have a qualified high-deductible health plan, or HDHP. You will first need to confirm with your employer that your health insurance plan is eligible. If you don't qualify for this type of account, visit our savings accounts page for other ways to save for medical expenses.
Once you've confirmed your health care is an eligible HDHP, you may be able to take advantage of these benefits.
- Put in money tax-free.*
- Get a competitive interest rate paid monthly, and earned tax-free.*
- HSA funds stay with you when you change jobs or retire, you own the account.
- Money you do not use in your HSA rolls over from year-to-year.
- Savings for retirement. After age 65, HSA funds can be used for any purpose without penalty.**
*To determine tax eligibility benefits, consult your tax advisor.
**See IRS rules for additional information.
- Opening deposit required: $25.00
- A $35 fee is incurred if closed within 120 days of opening