Hiway - Savings and Investments - Health Savings Account

Heath Care Spending on Your Terms

Take health care savings back into your own hands by establishing a Health Savings Account (HSA), in conjunction with a high-deductible health plan (HDHP).

Special Features:

Tax Free — Allows you to make deductible contributions, and earnings accumulate on a tax deferred basis. Distributions are tax free for qualified medical expenses.⁺
Flexible — Used to pay or reimburse qualified medical expenses for you and your family, such as health insurance deductibles and co-payments.
Year-to-Year Savings — Balances roll over from year to year allowing you to accumulate savings.
Account Options - Checking, Savings, Money Market and Certificates

Eligibility:

You must be covered exclusively under a HDHP.
You cannot be enrolled in Medicare or be claimed as a dependent on another person's tax return.

Contribution Limits:

Limits are revised each year to reflect cost-of-living increases.
If you are age 55 or older by the end of your taxable year, you are eligible for a catch-up contribution.

Health Savings Accounts vs. Other Medical Savings Plans

	Health Savings Account	Archer Medical Savings Account	Flexible Spending Account
Who is eligible?	Individuals with HDHP	Self-employed & small business employees with HDHP	Any employee, subject to employer-designated exclusions
Do unused balances roll from year to year?	Yes	Yes	No
Are earnings withdrawn tax free?	Yes*	Yes*	N/A
What is/are the contribution source(s)?	Individual and/or employer	Individual or employer	Individual only
Is there a catch-up contribution provision?	Yes	No	No

*For qualified withdrawals

E-mail us to learn more about opening a HSA at Hiway, or call (651) 291-1515 or (800) 899-5626.

⁺For specific information, you are encouraged to consult your tax or legal professional. IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, the instructions to IRS Form 8889, and the IRS's web site, www.irs.gov, may also provide helpful information.