Health Savings Accounts (HSA)

Health Savings Accounts (HSA) provide those with a high-deductible health insurance plan a tax-free way to save, and pay, for future medical expenses. Similar to an IRA, the HSA provides a vehicle for investing pre-tax funds in a government-sponsored account that can be used for a broad range of qualified medical expenses.

 

Benefits:
• When applied to qualified medical expenses, all withdrawals are tax free.
• Just like an IRA, contributions are 100 percent deductible.
• Provides the option to choose a lower cost health care plan.
• Your earned interest is tax-deferred.
• You own your account, and your unused balance can be carried from year to year, earning interest dividends.
 
Greater Iowa’s HSA will provide you with a secure debit card (debit card service is coming soon) to use for medical expenses. You can open your account with $0 and there is no limit on the number of transactions you can make. Any funds used for non-qualified medical expenses will be subject to taxes, however. The fee to maintain your Greater Iowa HSA is minimal.
 
Qualifications:
• Must be enrolled in a high-deductible health insurance plan.
• Must be 18 years old or older and not listed as a tax dependent.
• Cannot be covered by another health insurance plan, including Medicare.
 
There are limits to how much you can contribute. You should consult your tax advisor with any questions about the tax benefits and tax liabilities associated with an HSA.
 
Rates 
For current rates, click here and scroll to the bottom of the page under Health Savings Account. 
Fees could reduce earnings on account.  Rates may vary after the account is opened.  APY is accurate as of the date listed on top of rate page.