Personal Banking

Health Savings Account (HSA)

What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a tax-advantaged medical savings account available to eligible adults who are enrolled in a High Deductible Health Plan (HDHP).

Eastwood Bank Health Savings Account

  • No initial deposit
  • No setup fee
  • No monthly service fee
  • No minimum balance

What are the benefits of a Health Savings Account (HSA)?

  • Protection from high or unexpected medical bills.
  • Payment option for wide range of current qualified medical expenses, including those not covered by insurance.
  • Interest earned on the funds in an Eastwood Bank Health Savings Account (HSA).
  • Triple Tax Savings : A Health Savings Account (HSA) gives you three ways to save on taxes:
    • Tax-deductible contributions
    • Tax-free earnings
    • Tax-free withdrawals for qualified medical expenses
  • You own and control your HSA so you can make your own decisions about how much to deposit, whether to use HSA funds for current medical expenses or save them for future expenses, and which expenses to pay from the account.
  • Funds not used at the end of each year roll to the next year, they are not lost.
  • Health Savings Accounts (HSAs) are "portable" so you can keep your account even if you change jobs or become unemployed, change medical coverage, move, or change marital status.

Who is eligible for a Health Savings Account (HSA)?

Adults who are covered by a High Deductible Health Plan (HDHP) are not eligible for Medicare and cannot be claimed as a dependent on someone else's tax return may be eligible for a Health Savings Account (HSA). (Consult your tax and legal advisors to determine your eligibility, contribution amounts, and distribution qualifications.)

How does a Health Savings Account (HSA) work?

  1. Reduce the cost of your health insurance by switching to a High Deductible Health Plan (HDHP); then set aside funds in a tax-advantaged Health Savings Account (HSA) to help pay for your medical expenses.
  2. Make pre-tax or tax-deductible contributions to your Health Savings Account up to statutory limits (adjusted annually).
  3. Use the funds for qualified medical expenses until your deductible is satisfied and for other expenses not covered by insurance.

Who does what?

U.S. Treasury

  • Regulates Health Savings Accounts (eligibility, contributions, qualified medical expenses, etc.).

Individual (for self or family)

  • Chooses High Deductible Health Plan (HDHP) and Health Savings Account (HSA) provider.
  • Owns and controls their Health Savings Account (HSA).
  • Decides how much to contribute to their Health Savings Account (HSA).
  • Decides when and how much to withdraw funds for qualified medical expenses.

Health Insurance Provider

  • Provides benefits per the High Deductible Health Plan (HDHP) policy you purchase.

Eastwood Bank (offering HSA)

  • Provides Health Savings Accounts (HSAs).

Tax / Legal Advisor

  • Professional advice on any legal or tax issues.
To open an Eastwood Bank Health Savings Account (HSA) or learn more, contact a Personal Banker.
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