Health Savings Accounts
A Health Savings Account, or HSA, can be a valuable tool to help you save money for medical expenses for you and your family. An HSA is a tax-exempt account established specifically for the purpose of paying qualified medical expenses. Most people who are covered under an IRS-qualified High Deductible Health Plan (HDHP), such as the SOLO Smart Choice Plan, can open and contribute to an HSA.
Enjoy the benefits of a Health Savings Account:
- No application or set-up fee
- No minimum balance is required
- The account is free for individuals who use direct deposit
- Interest is paid on balances over $1
- A free, no annual fee, Smart Debit Card is provided
- A free box of checks is provided
- Money transfer functions are free
- An account closure fee is not charged
Advantages of a Health Savings Account
Tax Deductible Contributions and Distributions
The money you deposit into your HSA will reduce your taxable income for the year, even if you don’t itemize your taxes. If you make deposits to the account, the money can be 100 percent tax deductible, up to the IRS maximum.
Unused Contributions Rollover
Another advantage is that you are not obligated to use the money you contribute to your HSA each calendar year. The money can remain in the account and earn interest until you need it – whether that’s next month, next year, or in 10 years. At the age of 65, the account can be used as retirement savings or continue to be used for medical expenses, you decide.
To view our
SOLO Smart Choice Plan that is HSA-eligible, click on the link.
SOLO Health Plans are subject to medical underwriting.