Health Savings Account (HSA)
If you're looking to supplement your high-deductible health plan to help you cover your medical expenses, a Health Savings Account (HSA) from Columbia Bank could be the perfect solution for you. Our tax-advantaged, interest-bearing HSA allows you to pay for medical expenses as quickly and easily as possible.
The health savings account is a tax-exempt trust or custodial account established exclusively to pay qualified medical expenses of the HSA owner and family members.
HSA eligibility requirements:
- Must be covered by a high-deductible health plan.
- 2017 single coverage: minimum deductible of at least $1,300 AND the maximum out-of-pocket expenses of $6,550.
- 2017 family coverage: minimum deductible of at least $2,600 AND the maximum out-of-pocket expenses of $13,100.
- Must not be covered by any other health plan that is not considered a high-deductible health plan.
- Must not be entitled or enrolled for benefits under Medicare.
- Must not be claimed as a dependent on another person's tax return.
- HSA contributions are no longer limited by a health plan's deductible amount, resulting in higher contribution amounts for most HSA holders.
- IRA holders may make a one-time "direct rollover" to an HSA (limited to the maximum annual contribution amount)
- HSA holders are allowed to make a one-time transfer of assets from FSA or HRA plans to an HSA.
- HSA holders with FSAs are now eligible to make HSA contributions during the grace period (first three months of the year) allowed for FSAs.
- Self-only coverage: the maximum yearly contribution amount for 2017 is $3,400.
- Family coverage: the maximum yearly contribution amount for 2017 is $6,750.
- "Catch-up" contribution allowed for individuals age 55 and over is $1,000.
- Contributions must be made by April 15.
- Tax-free distributions if funds are used to pay for medical expenses.
- Distributions for non-medical expenses are taxable and subject to a 20% penalty if withdrawn before age 65 (except in the cases of death or disability).
Contact Columbia Bank to connect with a representative and begin saving for medical expenses with a health savings account today.