Be Prepared for Health Related Costs
Let’s be honest: you don’t enjoy going to the doctor. But you really don’t like the costs associated with a doctor’s visit or a trip to the emergency room. But there is a way to bridge the gap to your deductible or out-of-pocket max: a health savings account.
What is a Health Savings Account?
- A health savings account (HSA) is a tax-exempt trust, or custodial account, that an account holder sets up with Farmers State Bank
- It allows the account holder to pay for certain medical expenses
- This account must be used in conjunction with a high deductive health plan (HDHP).
Benefits of an HSA
- Interest grows tax free
- Withdrawals are tax free when used for qualified medical expenses
- The balance rolls over year-to-year automatically
- HSA is owned by you, not your employer
To Qualify for HSA
- Be covered by a high deductible health plan (HDHP)
- The HSA owner may have no other health insurance coverage
- The account holder is not enrolled in Medicare
- The HSA owner cannot be claimed as a dependent
To open a health savings account, stop by a Farmers State Bank office in Algona, Whittemore or West Bend today!