Minster Bank's Health Savings Account (HSA) is a powerful financial planning tool to help you manage your healthcare expenses.
What Is It?
A Health Savings Account is a tax-advantaged account that can be used to pay for current or future qualified medical expenses. HSAs are offered to qualifying individuals only in conjunction with a high deductible health plan.
How It Works
You contribute a portion of your paycheck into this account before taxes, subject to certain limits, reducing the amount of federal income tax you pay for the year. Then, you can make tax-free withdrawals to pay for qualified healthcare expenses such as:
- Office visit co-payments
- Insurance deductibles
- Eligible prescriptions
- Dental care
- Eye care, including glasses, contacts, and more
Benefits of the Minster Bank HSA
- Triple Tax Benefits - (1) The HSA can be funded on a pre-tax basis, (2) distributions made from the HSA for qualified medical expenses are tax-exempt and (3) investment income in the HSA grows tax-deferred and distributions of income for qualified medical expenses are tax-exempt.
- Roll Over - With the Minster Bank HSA, money left over in your account at the end of the year rolls over into the next year. Unlike a Flexible Spending Account, there is no use it or lose it
- Portability - You can continue your account even if you change places of employment. Minster Bank will still be here to service your account.
- Control - You own your account and decide how to spend your healthcare dollars.
- Flexibility - At age 65, or when you become covered by Medicare, the money in your account can be used for any reason without penalty. You still pay income tax on these distributions if they are for non-qualifying medical expenses.*