The Power of Health Savings Accounts

In today's ever-changing healthcare industry, one tool that has emerged as a powerful ally for those seeking to take control of their medical expenses while building financial security is Health Savings Accounts (HSAs). If you're enrolled in a high deductible health plan (HDHP), an HSA can be a game-changer, offering a blend of tax advantages and savings opportunities. At San Luis Valley Federal Bank, we understand the significance of HSA accounts and are eager to share with you this invaluable resource.

Here's how an HSA works!

Each year, you decide how much to contribute to your HSA, up to a maximum limit determined by the IRS. The money in the account then helps pay toward the deductible. Once the deductible is met, the insurance kicks in to cover any additional costs – just like a traditional insurance plan.

HSA account holders may receive a debit card or checks connected to their HSA balance to pay for deductibles, co-pays, and other eligible medical expenses. Funds withdrawn for non-medical expenses before the age of 65 are subject to a penalty.

Any unused funds roll over from year-to-year and earn interest.
With HSAs, the individual owns the account —– not the employer, even if they contribute to it. That means you can take your HSA with you should you change jobs.

HSAs have a triple tax advantage:

The Power of Flexibility

One of the standout features of HSAs is their flexibility. Unlike some other healthcare accounts, HSAs have no "use it or lose it" policy. This means that any funds you contribute to your HSA remain in your account indefinitely. This is particularly advantageous when compared to Flexible Spending Accounts (FSAs), which often require you to spend your funds by the end of the year.

HSA Tips