Health Savings Account (HSA)
Give your employees a benefit that really means something. Provide them with the opportunity to fund a Health Savings Account. HSAs offer tax-advantaged* ways to save for qualified medical expenses. The account is also theirs to keep, even when they change employment. An HSA also offers the flexibility to roll over funds year to year.
- Provide employees with a tax-advantaged* way to pay for qualified medical expenses
- Interest calculated daily, compounded and paid monthly
- Must be used in conjunction with a High Deductible Healthcare Plan (HDHP)
- Tiered rates to maximize earnings
- Easily withdraw funds via check, check card, or online
- Annual contribution limits apply
- Convenient automatic deposits from other Consumers accounts
- HSA belongs to employee (transferrable)
- Rolls over year-to-year (No “use it or lose it” policy)
- Free online banking & bill pay
- $50 minimum deposit required to open
In order to qualify for an HSA, you must:
- Be under age 65
- Have coverage through a High Deductible Health Plan (HDHP)
- Have no other first-dollar medical coverage
- Not have any other coverage through health insurance that is not an HDHP
- Not be currently enrolled in Medicare
- Not be claimed as a dependent on someone else's tax return
- More Information
- Rollovers and transfers are not subject to contribution limits.
- Individuals age 55 and over are eligible for an additional "catch-up" contribution.
- Any amounts used for purposes other than to pay for "qualified medical expenses" are taxable as income and subject to an additional tax penalty.
- Several tax penalties may apply to various HSA transactions, and are in addition to any federal, state, or local taxes.
For more information about HSAs for businesses, visit the IRS here.
*Consult your tax advisor.