Health care is a major issue facing many individuals and families today. Health Savings Accounts (HSA) were created by the Medicare bill and are designed to help those with High Deductible Health Plans (HDHP) pay for current and future qualified medical expenses. The HSA offers individuals many benefits, including the ability to keep their money and save towards retirement. HSA accounts can be funded by you, your employer, or both.
To be eligible to open a Health Savings Account, a person must meet the following criteria:
- Be covered by a high deductible health plan.
- Have no other medical coverage.
- Not be enrolled in Medicare.
- Not eligible to be claimed as a dependent on someone else’s tax return.
High Deductible Health Plan Requirements
|Tax Year||HDHP Coverage||Minimum Deductible||Out-of-Pocket Expense Limit|
Some great reasons to open a Health Savings Account:
- Tax savings
- Earned interest
- Reduced insurance premiums
- Long-term savings
The Markesan State Bank offers an interest bearing HSA Checking Account. With this account we require a minimum $100.00 deposit upon account opening. There is a $25.00 setup charge which covers the cost of checks and documentation. HSA Debit Cards are available also.
All deposit accounts at the Markesan State Bank are FDIC insured, including Health Savings Accounts. The standard insurance amount is $250,000.00 per depositor, per insured bank, for each account ownership category. The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for more coverage if they have funds in different ownership categories and all FDIC requirements are met.
Contribution limit may be reduced by partial-year eligibility, MSA contributions, and family coverage rules for married couples.
|Tax Year||HDP Coverage||Standard Limit||Catch-up Amount (Age 55+)||Total Contribution Limit for Age 55+|
Contribution Deadline: Income tax return filing due date, not including extensions.
To see if you qualify, please stop by and talk to an HSA specialist in Randolph, Waupun or the home office in Markesan