Horizon Banks 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!