Health Savings Account
What is a Health Savings Account?
Health Savings Accounts (HSAs) combine high deductible health insurance with a tax sheltered savings plan. Money from the savings plan can be used for most medical expenses or in meeting your annual deductible. HSAs can reduce health insurance premiums and enable the insured to build up funds to pay out of pocket expenses for small and routine expenses. Federally qualified HSAs are tax-deductible, tax-deferred, and tax-free.
Contributions to your HSA can be made by either the employer or the employee. All contributions are tax-deductible to the lesser of 100% of the deductible or to the IRS maximum of $3,350.00 for single coverage and $6,750.00 for family coverage for the year 2016.
An eligible expense is defined as those expenses paid for as described in Section 2 of the Internal Revenue Code. Additionally, the IRS has allowed non-prescription drugs as described in Rule 2003-102, 2003-38 I.R.B. 559. Professional Bank, N.A. is not engaged in rendering tax advice. For more information, please see IRS Publication 502 titled, Medical and Dental Expenses, catalog number 15002Q. If tax advice is required, seek the services of a tax professional.
Details of the Plan
- Interest compounded daily and paid monthly
- Unlimited check writing
- Monthly Statements
- Free Debit Card
- Free Online Banking
- Free 24 Hour Voice access to account
- No Set up Fees
- $2.00 Monthly Fee if Balance falls below $2,500.00
- Designated for individuals or employers
- Account must be established and all documentation signed and returned before any deposits are accepted.
Download Application Form (.pdf)
If you would like to conduct more research on the subject of Health Savings Accounts, we suggest you take a look at the following websites:
US Department of the Treasury Resource Center - HSA's
IRS Publication and HSA Information
OPM.gov HSA Information