Have you ever wondered what a Health Savings Account is all about or if it’s for you? If you have a high deductible health insurance plan, it may be a good choice for you. Simply put, this is a savings account where the money you deposit is tax free. Those funds can only be used to pay for qualifying medical expenses.
To contribute to an HSA, you must first be covered under a high deductible health insurance plan. For 2021, the health plan must have a deductible of at least $1,400 for self-only coverage and $2,800 for family coverage.
The IRS annually adjusts contribution limits, health plan minimum deductibles and limits on out-of-pocket medical expenses. Contributions of up to $3,600 for self-only coverage and $7,200 for family coverage can be made in 2021. If you’re 55 or older at the end of the year, you can put in an extra $1,000 in catch up contributions. You pay no taxes on the money you save in this account.
With a VCNB HSA, you will receive a debit card as well as a complimentary first box of checks. Accept electronic statements and we will waive the $3 monthly fee. Please note, the account owner is responsible for determining eligibility. It’s a good idea to consult your tax advisor before opening an account.
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