Health Savings Account (HSA)

Health Savings Account (HSA)

An HSA allows you to ensure your physical health and financial health while reducing your tax payments. The way it works is simple. You can contribute money to this savings account straight from your paycheck, so you don't pay taxes on the income. Use the funds for a qualified medical expense and you never pay tax. Best of all, you own the HSA, so funds roll over year to year and you carry the account with you wherever you go.

Summary
  • No setup or annual fees
  • No minimum balance to open
  • Contributions are tax free*
  • Interest grows tax free
  • Withdrawals are tax free when used for qualified medical expenses**
  • Money rolls over year-to-year automatically
  • HSA is owned by you, not your employer
  • Easy withdrawal access by check, debit, online, teller

Residents within a 100-mile radius of Dubuque, Dyersville, or West Des Moines, Iowa only please.

*If contributions are made after income was taxed, the amount deposited is tax deductible.

**Withdrawals for non-qualified medical expenses are subject to income tax and a 10% penalty. The 10% penalty is waived for persons 65 and over or who have become disabled. If you close your account before interest is credited, all accrued interest will be paid.

Eligibility
  • There are no income requirements or limitations
  • Must be covered under a qualified, high deductible health plan
  • Must not have coverage by another type of health plan
  • Cannot be claimed as a dependent on another person's tax return
  • Cannot be enrolled in Medicare
Contribution Limits

Contribution limits are set by the IRS. Current 2010 contribution limits are:

  • $3,300 for a single person
  • $6,550 for a family
  • A person age 55 or older may make an additional $1,000 in "catch-up" contributions