A HSA is a tax-exempt trust or custodial account established exclusively for the purpose of paying qualified medical expenses of the account beneficiary, who is covered under a high-deductible health plan (HDHP).
Who is eligible for a Health Savings Account?
To determine if you are eligible for a HSA, refer to your insurance agent or tax advisor; your employer may also know if you are eligible. Any individual can open an HSA if, in a given month, if the individual is:
- Covered by an HDHP on the first day of that month
- Not covered by any other health plan that is not an HDHP
- Not enrolled in Medicare
- Not named as a dependent on another person’s tax return
Details of a Health Savings Account:
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Checking Account with a Monthly Statement (Qualified Distributions & Contributions are the Account Holder’s Responsibility)
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No Minimum Balance
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One Time $25 Set-up Fee
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Free Debit Card with Additional Account Relationships (No ATM Access)
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Check Writing Abilities with Additional Account Relationships
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Free Online Banking Access
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Competitive Interest Rates
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