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 for Qualification:

  • Have coverage under an HSA-qualified “high deductible health plan” (HDHP).  A minimum deductible of $1,300 for single coverage or $2,600 for family coverage.
  • Not be covered by any other health plan other than another HDHP.
  • Not be enrolled in Medicare.
  • 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 2015 maximum annual contribution limits:

  • $3,350 for self-only coverage
  • $6,650 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.

 

Need more information about HSAs?
Visit the Department of the Treasury website at www.treasury.gov and search for “Health Savings Accounts.” 

Insurance, Investment and Trust Products are: Not FDIC Insured, Not Bank Guaranteed, May Lose Value, Not Insured by any Government Agency, Not a Bank Deposit