Posted
on Tuesday, October 15, 2024
in
Health Savings Accounts
Looking for a Way to Stretch your Healthcare Dollars?
You might want to consider a health savings account (HSA). An HSA can be a powerful tool to stretch your healthcare dollars in several ways:
- Tax advantages. Contributions to an HSA are made with pre-tax dollars, reducing your taxable income. Additionally, the money in your HSA grows tax-free, and withdrawals for qualified medical expenses are also tax-free.
- Qualified medical expenses. You can use HSA funds to pay for a wide range of qualified medical expenses, including co-payments, coinsurance, prescriptions, dental care, vision care, and even some over-the-counter medications.
- Long-term savings. HSAs can be invested, allowing your savings to grow over time. This can be particularly beneficial if you start contributing early and let the funds compound.
- Flexibility. Unlike Flexible Spending Accounts (FSAs), HSAs do not have a “use-it-or-lose-it” rule. The funds can roll over year to year, so you can save for future medical expenses.
- Post-retirement benefits. After age 65, you can use HSA funds for non-medical expenses without a penalty; however, you will need to pay income tax on those withdrawals. This makes HSAs a versatile savings tool for retirement planning.
By taking advantage of these benefits, an HSA can help you manage healthcare costs more effectively and save money in the long run.
Do you have any questions about HSAs or want to open an account?
Visit First National Bank’s HSA Help Center for the latest information about health savings accounts, including the 2025 contribution limits.
You can also conveniently apply for an HSA online. First National Bank’s HSAs require no set-up fee or annual fee. There are also no monthly maintenance fees, as long as your account balance remains at $500 or greater.
To be eligible for a HSA, you must be enrolled in a high-deductible health plan through your employer or self-employment.
If you have questions or would like to open an account in-person, please stop by any of our bank locations. You can also call the bank’s Customer Service Center at 515-232-5561 or 641-342-6581 during regular business hours.