Health Savings Accounts
HSA Tools
- Manage My Investments (Access ID provided by The Bancorp Bank)
- Order Checks (Access ID provided by The Bancorp Bank)
- Online Bill Pay (Access ID provided by The Bancorp Bank)
- Eligible Expenses - As outlined in IRS Publication 502 and 969
- Medline Plus
- WebMD
- Deciding between an HSA and a Traditional Health Plan
- HSA Contribution Calculator
- HSA Goal Calculator
- HSA Savings Calculator
Health Savings Account Information
Health Savings Accounts (HSA) are a tax advantaged way to pay for health care expenses. Enacted as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and revised by the Tax Relief and Health Care Act of 2006, HSAs permit individuals who are actively enrolled in a qualified High Deductible Health Plan (HDHP) to deposit money tax-free into an HSA. Tax-free withdrawals can made from the account for qualified medical expenses.
Why enroll in an HSA?
An HSA allows you to pay for all of your medical expenses using tax-free money and YOU control the funds in the account. Any unused money in the HSA remains yours.
Who can establish an HSA?
Anyone enrolled in a qualified High Deductible Health Plan (HDHP) with no other health coverage can open and contribute to an HSA.
Other coverage can be:
- Another group or individual health plan
- Enrollment as a dependent in your spouse's health plan
- A Health Care Flexible Spending Account
Any earnings (interest) from the HSA are also tax-free.
Should I Enroll in an HSA?
Choosing the right health plan for you and your family can be a difficult task. There are many factors that affect your decision. If you are considering an HSA, it is important to have access to the right tools to help you make that decision. Also, the cost of health care should not be the only factor in your decision. An underlying health condition or ongoing prescription medications should also impact your choice. Please use the HSA Tools listed above to find out if a HSA would work for you.
You have many options when choosing an account to help pay for rising medical costs and plan for retirement. Use the chart below to compare some of the options available…
| Health Savings Account | Medical FSA | 401(k) | IRA | |
|---|---|---|---|---|
| Contributions are deducted directly from my payroll check… |  |
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| Contributions are exempt from any Federal and State Taxes… | |
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| Contributions are exempt from FICA and Medicare Taxes… | |
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 |
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| Any earnings are TAX FREE at the time of eligible withdrawal… | |
N/A | |
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| Withdrawals for eligible medical expenses are TAX FREE… | |
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| At age 65, withdrawals for non-medical expenses will be treated as income WITHOUT incurring tax penalties… | |
N/A | |
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| The account is portable… | |
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The 2010* maximum contribution is as follows:
- $3,050 if enrolled in employee only coverage
- $6,150 if enrolled in employee plus dependent(s) coverage
- Catch-up Contribution - If you are age 55-65, you can contribute an additional $1,000
*as determined and indexed by the IRS each year
How do I contribute to an HSA?
There are no restrictions on who can contribute to your HSA. Therefore, you (via a pre-tax payroll deduction), your employer, or any other person can make an HSA contribution on your behalf. And, all contributions to an HSA are Tax Free!
What can I use the funds for?
You can use the funds tax-free to pay for qualified health care expenses for yourself and any of your qualified dependents. Any non-medical withdrawals (non-eligible expenses) will be considered taxable income and a 10% excise penalty will apply if you are younger than age 65.
What are eligible expenses?
Some examples include deductibles, copays, coinsurances, dental and vision expenses, prescription drugs and some over the counter medicines. Please refer to IRS publication 502 or 969 for more information.