Health Savings Account
What is a Health Savings Account (“HSA”)?
Commonly known as an "HSA", a Health Savings Account is a tax-exempt custodial account established for the purpose of paying or reimbursing qualified medical expenses for you, your dependents or your spouse. Think of it as a medical IRA!
Just like a regular bank account, the unused money in your HSA rolls over from year to year so you can build your savings to cover future medical expenses - you'll never lose unspent money. And since your HSA belongs entirely to you, it moves with you if you should change jobs.
Frequently Asked Questions about HSAs
| Contributions made by: | Employee, other individuals and/or employer |
| Account owner: | Individual |
| Tax benefits: | Pretax contributions; tax-free withdrawals for qualified expenses; tax-deferred earnings |
| Interest earned: | Yes |
| Contribution limit: | Yes, $3,250 individual or $6,450 family (2013) |
| Withdrawals for non medical expenses: |
Allowed, but taxed 20% effective 2011 |
| Claim receipts must be submitted: | No - but employee should keep receipts in case of IRS audit |
| Unused balance: | Money is carried forward and accumulates |
| If employee leaves the company: | Money stays with the employee |
Member FDIC. Member of the Fulton Financial Family.