Have You Considered a Health Savings Account?
Even with the best planning, life will sometimes throw you a curveball. And if you happen to get sick or injured, you may find that medical bills have a sneaky way of piling up. That's why opening a Health Savings Account (HSA) is one of the smartest things you can do to protect yourself and your family.
What is a Health Savings Account?
Unlike a traditional savings account, an HSA is designed to help you save for future medical expenses if you have a qualified High Deductible Health Plan (HDHP). When those medical bills start rolling in, instead of depleting your hard-earned money from your personal savings account, you can tap into your HSA, which is there to make sure your health expenses are taken care of. One helpful feature of an HSA is that you can contribute pre-tax income from your paycheck through direct deposit, and employers can make contributions as well.
Who is eligible to apply for a Health Savings Account?
Individuals can apply for an HSA if they check off these eligibility requirements:
Employers may choose to offer a Health Savings Account to employees to help supplement their health insurance plans. As long as the employee’s plan is HSA-compatible, the HSA can apply to either health plans that are available through the employer or purchased individually.
What are the benefits of a Health Savings Account?
There are many attractive benefits to opening an HSA. Not only can you earn interest tax-free, but you have flexibility with how much you contribute and how you spend your savings. Here are a few of the popular benefits offered:
Employers offering an HSA to employees can enjoy the following benefits:
Where can I open a Health Savings Account?
A Health Savings Account (HSA) from Katahdin Trust is available for individuals and employers alike. Katahdin Trust is a locally-owned and managed community bank with 16 full-service branches throughout Northern Maine, greater Bangor and Portland regions. In addition to all of the benefits an HSA has to offer, Katahdin Trust has some excellent features customers have come to expect, including:
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