HEALTH SAVINGS ACCOUNT—START SAVING TODAY FOR MEDICAL EXPENSES
A Health Savings Account (HSA) from First Bank of Berne allows you to make tax-deductible contributions and your eligible distributions are tax-free. You can withdraw funds easily from your HSA for qualified medical expenses, using your debit card or a check. The money in your HSA can be carried over year-to-year, and you can use it for your own or other family members’ medical expenses, even if they are not covered under your insurance plan.
ARE YOU QUALIFIED FOR A HEALTH SAVINGS ACCOUNT?
You will qualify if you are:
- An adult covered under a “high deductible health plan” (HDHP)
- Not in an insurance plan that has co-pays or a plan that pays anything prior to your deductible amount
- Not claimed as a dependent on someone else’s taxes (minors, college students)
- Not eligible to be enrolled in Medicare
WHEN AND WHAT TYPES OF CONTRIBUTIONS CAN YOU MAKE?
- You can make tax deductible contributions to your HSA whether or not your deductions are itemized (any time during the current year and between January 1st and April 15th for a prior year)
- If you have a HSA account in a different bank, you can also make a rollover contribution once per year into your First Bank of Berne HSA account.
- Your employer can make contributions that are not taxed to you as an employee or to the employer
- Anyone may make a contribution on behalf of an eligible individual and the person receiving the contribution (account holder) gets the tax credit.
- Direct transfers between financial institutions can be made without restrictions.