Health Savings Accounts
Does your business offer a High Deductible Health Plan? It's easy to set up with PremierWest.
PremierWest Bank is one of a few banks currently offering Health Savings Accounts (HSA). A Health Savings Account is a tax-deferred savings account tied to a high deductible health plan offered to your employees. Your employees will thank you.
Health Savings Accounts.....Learn More
- Summary
Contributions:
- Can be made by the account holder, family member and/or employer.
- Can be made up to 100% of annual deductible (maximum limit set by IRS each year)
- Catch-up contributions are available to individuals and spouses who are between the ages of 55 & 65
Tax Benefits:
- Contributions can be made pre-tax through a Cafeteria Plan or as an above the line tax-deduction (similar to an IRA)
- Interest and/or earnings on the assets grow tax-deferred
- Distributions are tax-free if used for qualified medical purchases
Allowable Distributions:
- Money saved in an HSA can be used for qualified medical expenses (see IRS Publication 502)
- HSA funds can be used to pay COBRA or other medical insurance premiums during periods of unemployment or temporary lay-off
- After age 65 HSA funds may be withdrawn for non-medical reasons but are taxed as regular income
- Before age 65 HSA funds may be withdrawn for non-medical reasons but are treated as taxable income and carry a tax penalty
Peace of Mind:
- It's convenient and safe
- It saves you money and time
- It earns you money
