A Health Savings Account from Iowa State Savings Bank combined with a high deductible health plan from your insurance provider can reduce healthcare costs, and provide you with a tax-advantaged, lifetime medical savings account.
A Health Savings Account (HSA) is an account that individuals can set aside money to save for future medical expenses. An HSA is a tax-exempt account established for the purpose of paying medical expenses in conjunction with a High-Deductible Health Plan (HDHP).
Benefit of Owning a HSA
HSA funds roll over from year to year and always belong to you, growing tax deferred. Funds can be used for medical expenses and at the age of 65 can be withdrawn penalty-free for any reason.
A HSA debit card can be used to pay medical expenses at the point of service. You can take advantage of direct deposit to add money to your HSA.
A HSA gives you greater freedom when making healthcare choices. You can also decide how much and when you want to contribute to your HSA.
HSA deposits are tax deductible and can be used to pay for medical expenses at any time. We recommend that you consult a tax advisor for details.
Iowa State Savings Bank HSA Features
- No Setup Fee
- No Monthly Maintenance Fee
- Interest Earned Monthly with a Tiered Rate
- Free Debit Card
- Free Checks
- Free Mobile & Online Access
- Minimum Opening Balance $100
HSA contributions for 2020 will need to be made by April 15, 2021. Contact the bank for any previous year contributions.
In addition to the contribution limits listed above, an annual HSA 'Catch up Contribution' of $1,000 is available for individuals age 55 and older. If contributions are also being made by your employer, you will need to factor in that amount when making your own contributions.
Once you turn 65 or beginning the month you apply for Medicare, whichever comes first, you are no longer eligible to make contributions to your HSA. If you are turning 65 this year, you may be able to make a prorated contribution. Consult with your tax advisor to determine if you are eligible for a prorated contribution. After turning 65, you are still able to use your HSA to pay for qualifying medical expenses.
Not sure if a High Deductible Health Plan is right for you?
Visiting with your trusted insurance agent or your Human Resources Department is the first place to begin.