A Health Savings Account (HSA) is a tax-exempt account established for High Deductible Health Plan (HDHP) holders exclusively for the purpose of paying qualified medical expenses.
Anyone who has a High Deductible Health Plan (HDHP) is eligible for an HSA, regardless of his or her age or income bracket. The individual:
- Must be covered by a high deductible health insurance plan
- Have no other first dollar medical coverage
- Cannot be claimed as a dependent on another person’s tax return
- Cannot be enrolled in Medicare*
*For more information, contact your health insurance provider or benefits administrator.
To fund your HSA, you may authorize recurring payroll deductions, make direct contributions or automatic transfer from your checking or savings accounts. Employers and family members may also make contributions to your HSA on your behalf.
When you have a qualified medical expense that you would like to pay for, you can access the money in your account by using your:
- HSA Debit card (coming soon!)
- Checks
- Online Banking
- ATM
- Visit your local Seneca Savings office
Tax Advantages**
- Tax Deductible. Contributions to your HSA are tax-deductible up to the IRS allowed maximums.
- Tax-Deferred. The interest that your HSA earns is tax-deferred and rolls over year after year.
- Tax-Free. Funds from your HSA used for qualified medical expenses are tax free.
**Consult your tax advisor regarding the deductibility of HSA contributions or charges.