Health Savings Account
Flexible, affordable health coverage.Health Savings Account (HSA) plans are a way to secure more affordable health coverage for you and your family while you save on taxes. An HSA is flexible, affordable and easy to use.
To participate in an HSA, you must be enrolled in a High Deductible Health Plan (HDHP). For HSA purposes , the 2010 minimum annual deductible of an HDHP increased to $1,200 ($2,400 for family coverage) and the maximum annual deductible and other out-of-pocket expenses limit increased to $5,950 ($11,900 for family coverage).
Contributions to your HSA account are tax-deductible (tax deferred if made by your employer), and withdrawals are not taxed as long as they are used to pay for qualified medical expenses. Contributions that your employer makes to your HSA account are yours.
Your HSA money is tax-free as long as it is used to pay for qualified medical expenses. If you use the money for any other reason, you will be required to pay income tax and a 10% tax penalty on that amount (you will not pay a penalty if you are disabled or age 65 or older). It is up to you to keep the supporting records to show the Internal Revenue Service whether you used the funds to pay qualified medical expenses.
Additional information on HSA's can be found at the United States Department of the Treasury.
To open your Range Bank HSA, or for any questions, please call us at (906) 475-4151.