As you’re navigating the world of health insurance you likely have encountered the term HSA. Do you know what HSA means?
HSA stands for Health Savings Account and this is an easy way for folks who have high deductible insurance to save for medical expenses and to reduce their taxable income. If you are enrolled in a high-deductible insurance plan as defined by the government, you can qualify for an HSA. This year, to be eligible for an HSA, you must have an annual deductible of at least $1,350 for an individual and $2,700 for a family. This is set by the federal government and is subject to change in future years.
Each year you will decide how much to contribute to your HSA account although your annual contribution cannot exceed government mandated maximums. For 2018, the contribution limit for an individual is $3,450 and the contribution limit for a family is $6,900. Adults over 55 can add up to $1,000 more.
These contributions are tax deductible and the distributions are tax free when used for qualified medical expenses.
At VCNB, you will receive a debit card and a monthly statement with check images. Your first order of checks will be free and you will have unlimited checking writing. There is an initial $25 set up fee for the account. This fee will be waived for customers who present this coupon.
There is also a $3 monthly fee which will be waived for customers who select eStatements.
Want to learn more or open an HSA online? Click here and look under the Savings Accounts tab.
You can also seek more information or open an HSA in any of our seventeen locations.