What are the benefits of an HSA?
- HSA contributions – by employee or employer – are excluded from income.
- HSA earnings are tax-deferred.
- HSA dollars are never taxed if used for Qualified Medical Expenses
- An HSA stays with the individual even if they leave their job, change health plans or retire.
- Unused funds will roll over year to year, and, can be used even if you are no longer eligible to contribute to an HSA.
Who is eligible for an HSA?
The IRS requires that you are covered by an HSA-qualified health plan, do not have other health coverage (i.e., traditional [non-HSA] health plan, Medicare, Tri-Care, VA benefits or even a flexible spending account), and are not claimed as a dependent on another person’s tax return. For more information on eligibility requirements, see IRS publication 969.
Qualified Medical Expenses
Qualified medical expenses (QMEs) are designated by the IRS and include medical, dental, vision and prescription expenses. QMEs are subject to change by the IRS at any time and a list of specific examples of can be found on the IRS website, see IRS publication 502.
Annual Contribution Limits
|
Tax Year |
Individual Contribution Limit |
Family Contribution Limit |
|
2022 |
$3,650 |
$7,300 |
|
2023 |
$3,850 |
$7,750 |
|
At age 55+, an additional $1,000 is allowed annually |
||
Our HSA
Enjoy a low cost account:
- Online Banking, Mobile App, Billpay & free Debit Card.
- HSA Specialists at local Security Bank & Trust Co. offices are available to answer questions throughout the life of the account.
| Health Savings Account | |
| Minimum Balance to Open | $50 |
| Minimum Balance | $100 minimum average available balance to avoid Maintenance Charge |
| Maintenance Charge per Statement Cycle | $2 maintenance charge if average available balance falls below the Minimum Balance |
| Transaction Limitations | See Qualified Medical Expenses below |
| Earns Interest | Tiered interest |
| Compounding & Crediting Frequency | Monthly |
| Other | HSA Outgoing Transfer Fee: $25 Free eStatements. Paper Statement Fee: $4.95 per statement cycle |
Employers and HSA’s
Many businesses offer a HDHP and realize cost savings through their employees’ increased adoption of HSAs, and lower payroll taxes, it’s a win-win. The employer has better control of health plan costs, and the employee has a plan that allows them to save for current and future health care expenses. Employers are also better able to attract and retain employees with a product that helps them pay for and save for health care now and into the future.
Our Employer HSA Program
Security Bank & Trust Co. offers a hands-on, customizable program which includes an on-site account sign-up and employee Q&A session. You can feel good about offering your employee’s a low cost, competitive HSA and remain
