doctor performing a routine check up on a child

Health Savings Accounts (HSAs)

Health Savings Accounts (HSAs)

A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit.

If you have a high deductible health insurance plan, you can contribute to your HSA tax-free. In addition, your money grows tax-free and you can withdraw tax-free if you use the money for eligible medical expenses.1

Benefits

  • Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA.
  • Withdrawals to pay qualified medical expenses, including dental and vision, are never taxed.
  • Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.
  • Unlike a flexible spending account (FSA), unused money in your HSA isn’t forfeited at the end of the year; it continues to grow tax-deferred.
  1. Subject to qualifications. $20 annual fee per account.

Stop by any of our offices, give us a call at (866) 965-2419, or contact us.

2018 Kensington Bank | Sitemap | Privacy Policy | Legal

FDIC and Equal Housing Lenders logo