Health Savings Accounts
If you are an individual covered by a High Deductible Health Plan,* check out the advantages of a Newtown Savings Bank Health Savings Account (HSA):
- Tax-free health expenses**
- Automatic annual rollover with no time limits on usage
- Visa® Debit Card
- Competitive tiered interest rates
- Local availability & assistance for answering questions
More Insight on HSAs
- History: Health Savings Accounts were created by Congress to let individuals pay for health expenses on a tax-free basis.
- Tax Benefits: An HSA can provide significant Federal tax benefits such as tax-deductible contributions; pre-tax payroll deductions; tax-deferred savings growth; and tax-free medical expense payments.
- 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 other purposes, subject to income taxes similar to other retirement savings plans.
- Account Control: You determine when to use your funds and make payments. If you change jobs, the money in the HSA goes with you.
*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.