Health Savings Accounts

A Health Savings Account (HSA) requires the employee to be covered under a Qualified High Deductible Health Plan (HDHP). The employee and/or employer contribute funds to the HSA on a pre-tax basis. Funds can be used to pay for eligible medical expenses not covered under other insurance. Withdrawals for non-eligible expenses are taxed at a 10% penalty and included in income. After age 65, withdrawals can be made for non-medical purposes and the owner pays only income taxes – making it an alternative for retirement planning. The funds belong solely to the employee and never revert back to the employer.

Through payroll deductions both the employer and employee save FICA taxes of 7.65% of the contributions. The employee reduces his or her federal income tax liability and in most cases state income tax liability. Some examples of eligible expenses include:

Health FSA

With a Health FSA, funds can be used to pay for eligible medical expenses not covered under other insurance. Eligible expenses include:

  • Doctor’s office visits
  • Medical deductibles and co-insurance
  • Approved prescriptions and over-the-counter items
  • Vision and dental costs
  • Chiropractic service

We are proud to partner with HSA Bank, http://www.hsabank.com for HSA deposits.