Health Savings Account (HSA)
If you are covered by a high-deductible health plan (HDHP) and meet additional criteria*, an individual HSA can help you take control of your health care spending.
What is a Health Savings Account (HSA)?
An HSA is a personal bank account used to save for, and pay for, medical expenses not covered by a high-deductible health plan.
What is a high-deductible health plan (HDHP)?
An HDHP is an insurance plan designed to lower your annual or monthly insurance premiums by offering higher deductibles than traditional health plans. Many health insurance companies offer an HDHP, either individually or through an employer.
It’s yours – Funds in your HSA stay with you, even if you change jobs. Furthermore, if you are no longer covered by an HDHP, your account stays active and you can use the remaining funds for qualified medical expenses.
Tax advantages – The money is tax free both when you contribute to your account and when you make withdrawals to cover qualified expenses.**
Funds carry over year to year – Any unused HSA funds remain in the account and continue to accrue interest until you need them.
Investment opportunities – Once your HSA reaches a threshold you designate (typically $1,500), you have the option of investing in mutual funds.***
Information readily available – Enjoy secure 24-hour access to your HSA account online or download our free mobile app.
Easy to make payments – Your free BSNB HSA debit card makes it convenient to pay for qualified medical expenses.
*In addition to having coverage through a qualifying high-deductible health plan, you cannot be enrolled in Medicare nor can you be claimed as a dependent on someone else's tax return. If you have additional health care coverage, it must also be through an HDHP.
**Consult your tax advisor regarding your specific situation.
***Mutual fund offerings are provided by HealthcareBank, which is a registered broker-dealer and member FINRA/SIPC. HealthcareBank is not an affiliate of Ballston Spa National Bank. Investments in mutual funds are not FDIC insured, are not bank issued or guaranteed, and may lose value. The bank acts solely as custodian with any mutual funds being offered and sold through a registered broker-dealer by prospectus only. Past performance of investments is no indication or assurance of future performance. As with all investments, mutual funds involve risk. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Read the prospectus carefully before you invest. Some funds have a redemption fee under certain circumstances.