With a Health Savings Account (HSA) from Northern Hills Federal, you exercise far more freedom with your insurance money. You can use money from this HSA for any health expense (dental, vision, medicine, etc) and it is tax free. Utilize its liquidity by withdrawing money from the HSA for non-medical expenses, but do note that the withdrawal then becomes taxable.
Use this handy HSA Contribution Calculator to help you plan your investment.
Who can have an HSA?
You may be the ideal person to contribute to an HSA. Some of the basics include if you:
- Have coverage under an HSA-qualified “high deductible health plan” (HDHP)
- Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted)
- Are not enrolled in Medicare
- Cannot be claimed as a dependent on someone else’s tax return
Contributions to your HSA can be made by you, your employer, or both. However, the total contributions are limited annually. If you make a contribution, you can deduct the contributions (even if you do not itemize deductions) when completing your federal income tax return. Contributions to the account must stop once you are enrolled in Medicare. However, you can keep the money in your account and use it pay for medical expenses tax-free.
To see if you’re an ideal HSA candidate, call our Certified IRA Specialist, at Northern Hills Federal at 605-347-4527.
The information contained herein is not intended as investment advice. Always consult your tax advisor and/or financial planner to determine which option is right for you.