What is an HSA?
A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses.
- Tax-deductibleContributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA.
- Tax-freeWithdrawals to pay qualified medical expenses are never taxed.
- Tax-deferredInterest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.
- HSA money is yours to keepUnlike a flexible spending account (FSA), unused money in your HSA isn’t forfeited at the end of the year; it continues to grow, tax-deferred
How does an HSA Plan Work?
An HSA works in conjunction with high deductible health insurance.Your HSA dollars can be used to help pay the health insurance deductible and any qualified medical expenses, including those not covered by the health insurance, like dental and vision care.
Any funds you withdraw for non-qualified medical expenses will be taxed at your income tax rate, plus 10% tax penalty.
Once you meet your calendar-year deductible, the health insurance pays remaining covered expenses in accordance with the terms and conditions of your particular plan. Some plans pay 100% of covered expenses after the calendar-year deductible is met.
How do I get an HSA Debit Card?
An HSA Debit card allows you the convenience of spending money from your HSA account through the use of a card. An HSA debit card can only be used at a healthcare facility or merchant. Withdrawal restrictions are also waived on HSA debit cards.
Visit any State Bank branch to fill out an application for an HSA debit card. Please visit www.sbsu.com for more information regarding the State Bank HSA Account.