In response to rising health insurance premiums, many employers are raising deductibles on their plans in order to manage costs. This trend shifts the responsibility of payment for many common medical services to the consumer.
The purpose of a Health Savings Account (HSA) is to help those with high-deductible health plans pay for current and future qualified medical expenses.
Contributions that eligible individuals make to their HSAs are deductible on their federal income tax return. The interest earned in an HSA is also federally tax free if the funds are spent on qualified medical expenses. Employers who contribute to eligible employees’ HSAs can take a business tax deduction at year end provided the contributions are made on a “pre-tax” basis.
There are additional criteria you must meet to be eligible for an HSA, and a Park Bank personal banker would be happy to share these as well as further account benefits with you.
Park Bank has designed its health savings account with your needs in mind. Accessing funds in a Park Bank HSA is as easy as writing a check or using a specially designed Visa® debit card. It is your responsibility to ensure HSA funds are spent on qualified medical expenditures. Funds that are used for nonmedical expenses are subject to income tax and IRS penalties. See a tax advisor to determine if an HSA may be right for you.