Health Savings Account
This may hurt a little…Paying taxes on income spent on medical needs adds insult to literal injury; especially if you’re part of a high-deductible health plan.
A Great Southern Health Savings Account (HSA) is a way for you to save, little by little, in an account to be used exclusively for medical expenses…and it’s completely tax-deductible.
An HSA might just take away some of the sting.
HSA Advantages and BenefitsWith an HSA you get protection against high or unexpected medical bills, the flexibility to be able to save for current or future medical needs and complete control over the account. An HSA is also portable. If you change employers or insurance carriers, you take your HSA with you. The funds will remain in the account from year to year, just like an IRA, with no “use it or lose it” rules. Contributions to this account are also 100% tax deductible, including tax-free earnings through investment and tax-free withdrawals for qualified medical expenses. This account has no setup fee, no annual fee, very simple enrollment, and unlimited check-writing privileges, a free Great Southern Debit Card, Online or Phone Bank account access, competitive NOW account rates, monthly account statements and year-end IRS reporting. You can also set it up to have your employer make contributions.
HSA EligibilityTo be eligible for an HSA, you must be covered under a high-deductible health plan (HDHP). Ask a Great Southern Associate for the current minimum deductibles. You can’t also be covered by any other health plan that is not an HDHP, you can’t be enrolled in Medicare and you cannot be claimed as a dependent on another person’s tax return.
Contribution LimitsThe maximum annual contribution amount is generally the less of 100% of the annual deductible under the HDHP or a specified amount. Limits are subject to change – ask a Great Southern Associate for the current amount allowed when you apply. Annual out-of-pocket health expense limits1 are also subject to change – ask an associate for the current limits on single and family coverage.
Eligible ExpensesYou can use the money in your HSA to pay for any qualified medical expense permitted under federal tax law. In general, this includes most medical, dental2, and vision expenses, but not your insurance premium, unless you are unemployed and collecting federal unemployment benefits. For a list of eligible expenses provided by the Internal Revenue Service, please go to www.irs.gov/pub/irs-pdf/p502.pdf.
You can use the money in the account to pay for medical expenses for yourself, your spouse, or your dependent children. You can pay for expenses for your spouse and dependent children even if they are not covered by your HDHP.
How do I open my HSA?
- Enroll in a high-deductible health plan (HDHP) with an insurance carrier of your choice.
- Stop by the Great Southern Bank near you to open your HSA.
- Great Southern HSA benefits
- $25 minimum to open
- No minimum balance required
- No set-up fee
- No annual fee
- Simple enrollment
- Knowledgeable customer service assistance
- Self & employer contributions
- Unlimited check writing privileges
- Free debit card
- Online or Phone Bank account access
- Competitive NOW account rates
- FDIC insured account
- Monthly account statements
- Year-end IRS reporting
1 Includes deductibles and co-pays.
2 Includes braces for your children.