Health Savings
Easily manage your health expenses.
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**
No minimum balance required
No monthly maintenance fee
Automatic annual rollover with no time limits on usage
Visa® Debit Card
Competitive tiered interest rates
Local availability & assistance for answering questions
High Deductible Health Plan (HDHP)
Your HDHP has minimum annual deductible limits and there are maximum out-of-pocket expenses. These limits are subject to annual cost-of-living adjustments and are detailed in the chart below:
| Maximum Deductible | Maximum Out-of-Pocket Expenses | |
|---|---|---|
| Self-Only Coverage | $1,500 (2023) $1,600 (2024) |
$7,500 (2023) $8,050 (2024) |
| Family Coverage | $3,000 (2023) $3,200 (2024) |
$15,000 (2023) $16,100 (2024) |
HSA Contribution Limits
HSA contributions are generally tax-deductible unless they are made by your employer. You have until your tax return date (generally April 15 of the following year) to contributed to your HSA. Contributions are limited and are described in the chart below:
| Year | Self-only coverage | If age 55 or older | Family coverage | If age 55 or older |
|---|---|---|---|---|
| 2023 | $3,850 | $4,850 | $7,750 | $8,750 |
| 2024 | $4,150 | $5,150 | $8,300 | $9,300 |
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.
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*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.
**Consult your tax advisor for tax deductibility.