An HSA is a special tax-advantaged account used with a high-deductible health plan (HDHP). Distributions may be tax-free if you pay for qualified medical expenses. Ask your accountant or tax advisor to help determine if an HSA could be right for you.*
Why an HSA?
- Pay qualified medical expenses permitted under federal tax law at any time without federal tax liability or penalty (Click here for more information on HSAs and qualifying expenses)
- Earn interest starting with a $100 minimum average monthly balance
- Debit card and checks provide easy access to the account for qualified medical expenses
How an HSA works.
- You may establish an HSA if you’re covered by high-deductible health plan and have no other first-dollar coverage
- Funds contributed to HSA are not subject to federal income tax at time of deposit
- Funds rollover and accumulate year-to-year if not spent
- Annual contribution limitations exist based on individual vs. family coverage and age of participant
- Click here for detailed information on how an HSA works
*Capital Bank does not provide tax or retirement planning services. Consult a qualified advisor as needed.