Health Savings Account
In 2003, Health Savings Accounts were created to encourage individuals to save for future health care expenses. A health savings account (HSA) offers the advantages of tax deductible contributions and tax free distributions used for the payment of qualified medical expenses. Not everyone is eligible to have a health savings account, however. An individual must be enrolled in a high deductible health insurance plan (HDHP) in order to qualify for a health savings account.
Health savings accounts provide:
- More affordable health insurance policies
- Tax-deductible deposits
- Tax-deferred growth
- Tax-free distributions
Health savings accounts enable you to take control of your own health care decisions. They help you to save money on insurance premiums and on income taxes. Ask a representative for more information on setting up your Health Savings Account.
No minimum deposit to open.
You must be:
- Covered by qualified high deductible health insurance plan (HDHP)
- Not covered under other health insurance that is not a HDHP
- Not enrolled in Medicare
- Not another person’s dependent
No fees associated with a Health Savings Account
- Contributions remain in your account year after year until you use them
- Contributions are tax-deductible
- Withdrawals to pay for qualified medical expenses are not taxed
- Earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free
- Unused money in your HSA is yours to keep and continues to grow tax-deferred
- Community Bank offers a HSA debit card to make paying for expenses more convenient