Health Savings Account

Health Savings Account (HSA)

What is a Health Savings Account?

A Health Savings Account is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses like glasses, standard treatments or dental care. 

For the tax year 2020, you may be eligible to contribute up to $3,550 for single coverage and up to $7,100 for family coverage. Those aged 55 and older by the end of the year can contribute an extra $1,000.

The following criteria must be met in order to qualify for a Health Savings Account:
  • You are covered under a High-Deductible Health Plan (HDHP) for health insurance OR you are interested in switching to a High-Deductible Health Plan.
  • You are not enrolled in Medicare.
  • You are not claimed as a dependent on someone else's tax return.

What is a High Deductible Health Plan (HDHP)?

A HDHP is a health insurance plan that has an annual deductible and annual out-of-pocket expense limit that meets requirements set by federal law. Lincoln Savings Bank offers a number of HDHP compliant health insurance plans. Contact one of our insurance professionals for a NO COST, NO OBLIGATION initial consultation to help you determine which plan will best meet your needs.

What are the Advantages of a Health Savings Account?

  • Security - You are protected from high or unexpected medical expenses.
  • Affordability - You may be able to lower your health insurance premiums by switching to a High Deductible Health Plan.
  • Savings - Your savings may qualify for interest income or investment earnings. 
  • Control - You make all the decisions about how much you save, which medical expenses you will pay with the account, whether to invest the money in the account and more!
  • Portability - You can keep your HSA even if you have a major life change; such as a job change, move, or change of marital status.
  • Ownership - Your funds remain in your account from year-to-year. There is no "use it or lose it" rule.
  • Tax Savings - Your HSA provides triple tax savings.
    • 1) tax deductions for contributions
    • 2) tax-free earnings
    • 3) tax-free withdrawals for qualified medical expenses.

Learn more about how a Health Savings Account can benefit you!

Don’t be caught off-guard with a medical emergency or even simple medical.

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