With an HSA from Severn Savings Bank, you’ll receive tax breaks because we allow you to make 100% tax deductible contributions to your accounts, withdraw money from your HSA without tax penalties and decide how much money to save at a time to protect you against current and future medical expenses.
A health savings account (HSA) combines high deductible health insurance with a tax-favored savings account. Money in the savings account can help pay the deductible. Once the deductible is met, the insurance starts paying. Money left in the savings account earns interest and can roll over annually.
- Costs less than more “traditional” copay plans.
- Provides quality health insurance.
- One calendar-year deductible per family.
- Used to meet your deductible.
- Tax deductible off of gross income.
- Grow tax-deferred.
- NEVER taxed when used for qualified medical expenses.
- Rolls over year after year - no “use it or lose it”.
- Portable, goes with you wherever you go.
- Health insurance premiums when you’re between jobs.
- Qualified long-term care premiums.
- Medicare premiums and out-of-pocket expenses.
- Living expenses after age 65 (pay ordinary income taxes).
Contributions to the HSA are 100% deductible (up to the legal limit).
Withdrawals to pay qualified medical expenses, including dental and vision, are never taxed.
Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses,
Unlike a flexible spending account (FSA), unused money in your HSA isn’t forfeited
at the end of the year; it continues to grow tax-deferred.
55+ Contribution Catch Up
Health Savings Accounts (HSA) are subject to limitations and/or penalties imposed by the Internal Revenue Service. Please see your HSA Agreement or tax advisor for additional information.