Health Savings Account
Healthcare Coverage with Tax Savings
Health Savings Accounts (HSAs) were created by Congress to allow individuals to pay for health expenses on a tax-free basis. If you are an individual covered by a High Deductible Health Plan (HDHP),* check out the advantages of a Newtown Savings Bank HSA with:
- No fee checking account — no minimum balance, no monthly fee, and no per check charges — so your money goes to pay your medical expenses, not bank fees
- Competitive tiered interest rates — the more you save, the more you earn
- Free Visa® Check Card to access your funds
- Local availability and assistance — we’re here to answer your questions
Tax Benefits**
An HSA can provide significant Federal tax benefits:
- Tax-Deductible contributions
- Pre-Tax payroll deductions
- Tax-Deferred savings growth
- Tax-Free medical expense payments
No Time Limits
Funds in your HSA roll over automatically each year. There is no time limit on using your funds.
When You Retire
Money in your HSA can be saved tax-deferred until you retire. Once you reach age 65, money can be used tax-free for medical expenses, or used for other purposes, subject to income taxes similar to other retirement savings plans.
You Are in Control
You determine when to use your funds and make payments. If you change jobs, the money in the HSA goes with you. Be sure to compare HSA advantages to other health savings account options.
To visit our HSA service center, click here.
*A High Deductible Health Plan (HDHP) is an insurance policy with a high deductible and usually a lower premium. It can be combined with a Health Savings Account to pay expenses toward the deductible with tax-free dollars.
**Consult your tax advisor for tax deductibility.