An HSA is a Health Savings Account, which is a tax-exempt account set up to pay for or reimburse certain medical expenses. You must meet certain eligibility requirements to open an HSA. Read about the requirements and benefits of an HSA below. Visit the IRS website on HSA's for more detailed information.
Consult a tax professional to see if an HSA is right for you. Contact Brian Lentz to see if you qualify or if you would like to open an HSA at Bank of Dixon County.
Benefits of an HSA
- You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you don’t itemize your deductions on Schedule A (Form 1040).
- Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income.
- The contributions remain in your account until you use them.
- The interest or other earnings on the assets in the account are tax free.
- Distributions may be tax free if you pay qualified medical expenses. See Qualified Medical Expenses on the IRS website.
View full HSA benefits details and other details on the IRS website:
Qualifying for an HSA
To be an eligible individual and qualify for an HSA contribution, you must meet the following requirements.
- You are covered under a high deductible health plan (HDHP) on the first day of the month.
- You have no other health coverage except what is permitted under "Other Health Coverage" (see IRS website)
- You aren’t enrolled in Medicare.
- You can’t be claimed as a dependent on someone else’s tax return.
View full HSA qualifying information and other details on the IRS website: