Health Savings Account

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 and Money Market.

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 AccountArcher Medical Savings AccountFlexible Spending Account
Who is eligible?Individuals with HDHPSelf-employed & small business employees with HDHPAny employee, subject to employer-designated exclusions
Do unused balances roll from year to year?YesYesNo
Are earnings withdrawn tax free?Yes*Yes*N/A
What is/are the contribution source(s)?Individual and/or employerIndividual or employerIndividual only
Is there a catch-up contribution provision?YesNoNo

*For qualified withdrawals

Email 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.