Is a Health Savings Account Right for You?
Over-the-counter medicine for a fever. An unexpected trip to the emergency room for a broken ankle. An impromptu visit to the doctor. Prescription medicine. Medical supplies to manage a chronic disease. Root canal. Eye exam and new glasses.
Medical expenses; for most of us they are inevitable.
A Health Savings Account (HSA) from Auburn Savings allows account owners to pay for qualified healthcare expenses and save for those in the future—giving you a handle on healthcare spending.
What is an HSA?
HSAs are tax-exempt savings accounts that are set up to be used with a High-Deductible Health Plan (HDHP). A HDHP is an insurance plan that normally has lower premiums, but higher deductibles than other health insurance plans. To be proactive in having the available funds to cover qualified medical costs an HSA is an attractive choice. Before opening an HSA ensure your plan qualifies as a HDHP by consulting IRS publication 969.
Who can be on an HSA?
An HSA account can be set up as a self-only plan for only your medical expenses or as a family plan for you and your dependents.
What are the benefits of opening an HSA?
HSAs grow tax-deferred, allow for tax-deductible contributions, and the balance rolls over from year to year, so you never have to worry about losing your savings. Not to mention it is tax-free when used to pay for qualified medical expenses.
How can I contribute to my HSA account?
If your HSA is set up through your employer, you can simply direct deposit a decided amount each pay cycle and reap the benefits of tax-deductible contributions. If you are self-employed or choose to open an HSA yourself through a trusted bank, such as Auburn Savings, you can arrange direct deposit or deposit at will, being mindful not to exceed the maximum contribution.
Each year you decide how much you wish to contribute to your HSA, though you cannot exceed government set maximums (The 2018 single contribution maximum is $3,450 while the family contribution maximum is $6,850).
What can I use my HSA for?
Qualified expenses include most services provided by licensed health providers, as well as diagnostic devices and prescriptions.
Who can open an HSA?
According to federal guidelines, you can open and contribute to an HSA if you are:
• Covered under a High Deductible Health Plan (HDHP) on the first day of the month
• Not covered by any health plan, other than a HDHP
• Not enrolled in Medicare
• Not claimed as a dependent on someone else’s tax return
What will I need to open my HSA at Auburn Savings?
In order to open an HSA at Auburn Savings you will need the following.
• Valid picture ID
• Proof of physical address
• An opening deposit of $25
• $5 fee to open the account
Auburn Savings has some of the best rates around for HSA accounts, making opening an account with us a great choice. Plus, we are a local bank, which means familiar faces and a team who is always accessible and available to help you.
If you’d like more information about opening an HSA account with Auburn Savings, or if you have questions, please call or stop in to our Auburn or Lewiston branch—we’d be happy to assist you.
For Health Savings Accounts—bank on us.