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A Health Savings Account is a tax exempt or custodial account established exclusively for the purpose of paying or reimbursing qualified medical expenses for you, your spouse or your dependents. Qualified medical expenses can be paid directly from your Health Savings Account with a BankORION HSA VISA® Debit Card or checks.
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To be eligible for an HSA, regardless of your income.
You may make a contribution to your HSA each year that you are eligible. You may contribute up to the amount of your deductible, but no more than $3,350 for individual coverage or $6,650 for family coverage.*
Individuals age 55 and older can also make additional catch-up contributions in the amount of $1,000.
You may generally contribute the full amount allowed for the year regardless of when you became eligible during the year. If you become ineligible within 12 months, you will be required to pay income tax on the portion of your contribution that would have been disallowed under the previous rule, as well as a penalty tax.
Also, if you have more than one HSA or have made contributions to an Archer Medical Savings Account, your total contributions to all the accounts cannot be more than the limits discussed previously. Similarly, if your employer contributes funds to your HSA, you must reduce your contributions by the amount your employer contributed.
You may use money in the account to pay for any qualified medical expenses permitted under federal tax law. This includes most medical care and services, dental and vision care, and over- the-counter medicines with a prescription.
You may use the money in the account to pay for medical expenses for yourself, your spouse, or your dependent children. You may pay for expenses of your spouse and dependent children even if they are not covered by your HDHP.
Any amounts used for purposes other than to pay for qualified medical expenses are taxable as income and subject to an additional 20% tax penalty.
After you turn 65, or if you become disabled, the 20% additional tax penalty no longer applies.
Funds remaining in your HSA, that are not withdrawn to pay for qualified medical expenses, will continue to grow over time.
If you want greater control over your money, health and future, consider a Health Savings Account. Call or stop by today to learn more about our HSA.
Additional information about HSAs can be found on the U.S. Treasury website: www.treasury.gov (type "Health Savings Accounts" in the search box). Or visit the IRS website (www.irs.gov) and access Publication 969 (Health Savings Accounts and Other Tax-Favored Health Plans) and/or the Instructions for Form 8889 (Health Savings Accounts).