LifeSavings HSA (Health Savings Account)
Health Savings Accounts (HSAs) are emerging as an important financial tool to help individuals, families and businesses plan and save for personal medical expenses that you may incur today and in the future. If you are enrolled in a High Deductible Health Plan (HDHP) through your employer, you may be eligible to contribute to and receive the many benefits that an HSA offers. While an HDHP typically means lower premiums, you may pay more expenses out-of-pocket because of the higher deductibles. Not planning for unforeseen expenses can be devastating to your family’s savings. Consumers can take the savings gained from switching to a higher-deductible/lower premium HDHP and use those savings to make contributions into an HSA. It may sound confusing, but Monona Bank is here to help make setting up and managing your LifeSavings HSA easy and convenient.
In 2020, individuals enrolled in an HDHP may contribute up to $3,550 per year and families covered under a HDHP may contribute up to $7,100 per year. If you’re aged 55 or older, you can also contribute an additional $1,000 per year.
HSAs were designed exclusively to help families save for healthcare expenses and may offer tax advantages that a regular savings account cannot. Talk to a tax advisor about how you could deduct your contributions and recognize tax free growth.
Even better, unlike Flexible Spending Accounts (FSA), you don’t have to “use it or lose it” each plan year. Any unused money you don’t spend each year can continue to accumulate to help pay for future medical expenses.
With Monona Bank’s VISA® LifeSavings HSA Debit Card, you can make payments directly from your LifeSavings HSA account. You don’t need to use a HSA Card to make medical payments. If you have a checking account, you can easily transfer money online from your LifeSavings HSA to your checking account, eliminating the need to carry another card in your wallet. At the end of the year, it’s up to you to ensure the money withdrawn from your LifeSavings HSA matches the money spent on qualified health care expenses.
Talk to your tax advisor for additional information on how a LifeSavings HSA can benefit your personal situation.
Learn more about how consumers can benefit from Health Savings Accounts.
If your business offers employees a High Deductible Health Plan (HDHP), your employees may be eligible to contribute to a Health Savings Account (HSA). Learn more about how businesses can benefit from HSAs.