Health Savings Account
With a Freedom Bank of America HSA account, you have access to your savings while earning competitive rates with a high-interest bearing account.
Available for individuals with a Qualified High Deductible Health insurance plan (HDHP).
Details of the Freedom Bank Health Savings Account
- No minimum balance required
- Debit Card available to access funds**
- Checks available at no charge
- Minimum of $100 to open
- NO cost to open your HSA account and only a $5 monthly paper statement fee which can be waived if you receive an eStatement for your account
- Interest paid on all balances of $1,000 or more*
*Rates set by management
**Subject to Pre-Approval
HEALTH SAVINGS FACTS*
In order to offset health care costs, the government created Health Savings Accounts. Health Savings Accounts are tax-exempt trustee accounts used to pay or reimburse certain medical expenses you incur.
You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040.
Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income.
The contributions remain in your account from year to year until you use them.
The interest or other earnings on the assets in the account are tax free
An HSA is portable so it stays with you if you change employers or leave the work force.
You may make contribution to your HSA for the prior year if contribution is made by April 15th of the following year.
The amount you or any other person can contribute to your HSA depends on the type of High Deductible Health Plan (HDHP) coverage you have, your age, the date you become an eligible individual and the date you cease to be an eligible individual.
For 2013, if you have a self-only HDHP coverage, you can contribute up to $3,250. If you have a family HDHP coverage, you can contribute up to $,6450.
For 2013, if you are an eligible individual who is age 55 or older, your contribution limit is increased by $1,000 in addition to the normal contribution.
For 2012, if you have a self-only HDHP coverage, you can contribute up to $3,100. If you have a family HDHP coverage, you can contribute up to $6,250.
If you have more than one HSA in one year, your total contributions to all the HSAs cannot be more than the limits discussed earlier.
The rules for married people apply only if both spouses are eligible individuals.
*Source of Information- Publication 969 of the Department of the Treasury I.R.S.