We are currently accepting applications for the US Small Business Administration (SBA) Paycheck Protection Program (PPP). Learn more.

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.

Contact Us
Blog and News
We use cookies to improve your online experience. If you continue on our site, you agree to our cookie policy. Learn more about how we use cookies by reviewing our privacy policy. I agree