Where can you open a Health Savings Account in Indiana?
Right here at Logansport Savings Bank
HSA Pre-Application Forms - Save Time email support@logansportsavings.com
Health Savings Accounts were developed to manage health care expenses without risking your health care coverage. The concept has two parts:
- Qualified High Deductible Health Plan (HDHP) and
- Health Savings Account (HSA).
Take a look at what we have to offer. If an HSA is right for you, stop by and talk to an account representative at Logansport Savings Bank.
HSA Information
The concept of Health Savings Accounts combines an affordable qualified High Deductible Health Plan and a tax-favored health savings account. The combination results in savings through lower health care premiums and a reduction in taxable income. The HSA grows tax-deferred, and if you use your HSA funds for eligible medical expenses, you never have to pay taxes on those funds! With HSAs, you control your health care decisions!
- No Monthly Service Fees*
- Free Debit Card
- Free Checks
*Early closure fees may apply.
Introduction
A Health Savings Account, or HSA, is a tax-exempt account with a financial institution in which funds accumulate to pay for medical expenses. They were created in response to the rising cost of health care with the intent to give the consumer back the control of their health care costs as part of a movement towards consumer-driven health-care. HSAs also give financial incentives for employers of all sizes to provide health insurance and individual consumers to have health insurance. HSAs allow you to enjoy tax reductions while having affordable health insurance premiums.
Eligibility
Any individual/employee is able to have an HSA so long as their HDHP meets the IRS requirements to be a qualified HDHP. Contributions Contributions can be made by:
- Accountholders / Individuals
- Employers
- Any other third party
Contributions are tax-deductible for the accountholder. Employer contributions and employee contributions through a Section 125 Plan are pretax.
Contributions made to an accountholder's account belong to the accountholder until the funds are used (please see the Distributions section below).
Employer contributions must be made on a comparable basis.
Contributions are limited to the lesser of 100% of the deductible or the IRS Contribution Limit.
Distributions
Funds can be used tax-free at any time for eligible medical expenses. As of age 65, funds can be used for non-eligible medical expenses subject to ordinary income tax without any IRS penalty.
Prior to age 65, funds can be used for non-eligible medical expenses subject to ordinary income tax and a ten percent IRS penalty.
Upon the accountholder's death, the assets in the HSA become the property of their named beneficiary. If there is no beneficiary named, the assets go to the accountholder's estate.
- If the beneficiary is a spouse, the HSA may be treated as their own account.
- If the beneficiary is a non-spouse, the HSA must be treated as ordinary income for taxation purposes.