Establish a Bath State Bank Health Savings Account (HSA) in conjunction with a high-deductible health plan and take control of your current and future healthcare dollars. HSAs provide an option for health insurance coverage. Once a High Deductible Health Insurance Plan (HDHP) is purchased by an individual, they become eligible to participate in this tax-sheltered savings account, from which amounts can be withdrawn to pay for medical expenses until the deductible is met and the insurance plan begins to pay.
- The Bath State Bank HSA is yours, not your employer’s. You control the account. If you switch jobs, no problem. Your HSA remains with you.
- You receive tax deductions when you contribute to your account, tax-free earnings and tax-free withdrawals for qualified medical expenses.
- There is no income restriction for contributions; however, there are limits on the maximum annual contribution amount.
Those HSA holders 55 and older get to save an extra $1,000 for their contribution (known as a catch-up.) The 2020 data is listed below:
- Maximum annual HSA contribution for an individual is $3,550
- Maximum annual HSA contribution for a family is $7,100
- Maximum annual out-of-pocket expense for an individual is $6,900
- Maximum annual out-of-pocket expense for a family is $13,800
- Minimum deductible for an individual HDHP is $1,400
- Minimum deductible for a family HDHP is $2,800
The best way for an individual to determine if he has an HDHP is by asking his/her health insurance company or, if in an employer's health insurance plan, asking his/her employer. As well, joining the program mid-year may affect maximum contribution limits.
Our HSAs operate just like a checking account. Deposits/contributions can be made at any time. Check out our interest rates for this HSA The account can be accessed by check or debit card when paying medical expenses.