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Horizon Bank's Healthcare Savings Accounts FAQs

If you have a health insurance plan with a high deductible, you may want to set up a Healthcare Savings Account (HSA) to complement it. Not sure if it’s a fit for you? Here’s an overview to help you decide.
 

1.) What is an HSA?
It’s a bank account designed specifically to be used for qualified medical expenses for the owner of the account, and his/her dependents. You and your employer can both make contributions.
 

2.) How can an HSA benefit me?

  • HSAs offer several tax-related benefits:
  • Contributions are tax deductible.
  • Contributions are also pre-taxed; your contribution comes out of your paycheck before your taxes, so your healthcare money goes farther.
  • The money in your HSA is never taxed as long as it’s used for qualified medical expenses.
  • HSA contributions keep building. They roll over every year, and you can use the funds you’ve saved whenever you need to, for as long as you live.
  • Upon your death, your HSA funds are provided to your selected beneficiary.

3.) How do I use the money in an HSA?
The account works like a standard checking account, so you can use your Horizon Bank HSA funds using a debit card, or checks. You can also check balances online and at ATMs.

4.) What kinds of expenses can I use an HSA for?

  • Medical expenses like doctor visits, prescriptions, transportation to get medical care, and dental care
  • Long-term care insurance
  • Healthcare coverage when unemployed
  • Certain continuation-of-benefit healthcare coverage
  • Certain health insurance after age 65

5.) How much can I contribute?
In 2020 — Self-only: $3,500 Family $7,100
In 2021 — Self-only: $3,600 Family $7,200


Want to learn more? Contact us today for additional details about eligibility, contribution limits, and more!

 

 

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