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Need more information about HSAs?
Click here for our brochure or visit the Department of the Treasury website at www.treasury.gov and search for “Health Savings Accounts.” 


Health Savings Accounts

Cut Health Care Costs
As the cost of healthcare continues to rise, managing medical expenses can become increasingly difficult.  A high-deductible health insurance plan, along with a Security Federal Bank Health Savings Account (HSA), can help make these expenses less of a burden.  An HSA is a convenient account that allows you to save money to pay for qualified medical expenses or save for future expenses on a tax-free basis*. HSAs can be used not only for yourself but for your spouse, dependents or employees.

Requirements:

  • You must have coverage under an HSA-qualified “high deductible health plan” (HDHP).  A minimum deductible of $1,250 for single coverage or $2,500 for family coverage.
  • You must not be covered by any other health plan other than another HDHP.
  • You must not be enrolled in Medicare.
  • You must not be claimed as a dependent on someone else’s tax return. 

Benefits:

  • Protection against high or unexpected medical expenses
  • Tax-deductible contributions*
  • Tax-free withdrawals for qualified medical expenses*
  • Tax-free earnings when used to pay for qualified medical expenses*
  • Lower health insurance premiums by switching to health insurance coverage with a higher deductible
  • Funds remain in the account from year to year

Contributions
The annual amount you can contribute to an HSA is set by federal regulations.  If you are 55 or older, you can make catch-up contributions.  The 2014 maximum annual contribution limits:

  • $3,300 for self-only coverage
  • $6,550 for family coverage
  • $1,000 catch-up contribution

Stop by any Security Federal Bank branch to open your Health Savings Account today!

* The information provided should not be considered as tax or legal advice.  Please consult with your tax advisor and/or legal representative for guidance.

   

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