Health Savings Account
Help Offset Your Medical Expenses
We understand that health care costs can accumulate quickly, even after your insurance covers some of the expenses. That's why Telhio offers Health Savings Accounts (HSAs) to help offset out-of-pocket expenses. This account is exclusively for paying or reimbursing qualified medical expenses for you, your spouse, and your dependents.
Benefits of an HSA
No age or income limits
No employment guidelines
Deposits that are contributed pre-tax reduce income liability
Certificate of Deposit investment options
After age 65, funds can be used for medical expenses or anything else, subject to tax.
Interest earned on the account is tax-deferred
If you decide to open a Health Savings Account, you'll need to name a qualified trustee or custodian. Each year, you'll have to determine your allowable annual HSA contribution and whether you have qualified medical expenses eligible for reimbursement.
You Qualify If:
- You are covered under a high-deductible health plan (HDHP)
- You are not covered by any other health plan that is not an HDHP, with exceptions for plans providing preventive care and limited types of permitted insurance and coverage
- You are not enrolled in Medicare
- You are not claimed as a dependent on another individual's tax return
Using your HSA
Making a contribution to your HSA is simple
- Deposit cash or a personal check
- Set-up recurring transfers from your Telhio checking or savings account to your health savings account
- Rollover funds to another HSA
- Set-up a payroll deduction with your employer and deposit pre-tax dollars into the account
Note: Funds can be contributed toward the previous tax year up to the maximum contribution limit, and tax cut-off deadline (April 15th).
Access your HSA
- Pay with your Telhio HSA debit card
- Withdraw funds at a Telhio branch or ATM
- Order paper checks for your Telhio HSA account
- Pay out-of-pocket and reimburse yourself for qualified medical expenses from you HSA account
Save your receipts
It is important to retain receipts of all qualified medical expenses. Additionally, it is always best to call your insurance company. Read IRS publications 502 and 969 below or consult a tax professional for advice prior to opening a health savings account.
You may use your HSA funds for all kinds of qualified medical expenses. However, funds used to make non-qualified purchases (before age 65) are taxable and subject to a 20% IRS penalty unless an exception such as death or disability applies.
- Defines eligible medical and dental expenses
Explains programs designed to give individuals tax advantages to offset health costs. This includes:
- Health Savings Accounts (HSAs)
- Medical Savings Accounts (Archer MSAs and Medicare Advantage MSAs)
- Health Flexible Spending Accounts (FSAs)
- Health Reimbursement Arrangements (HRAs)
This is an IRS question/answer notice on Health Savings Accounts. This notice covers what HSAs are, who can have them, how they can be established, contributions to them, distribution from them, and other matters.
Use this form to:
- Report health savings account (HSA) contributions (including those made on your behalf and employer contributions)
- Figure your HSA deduction
- Report distributions from HSAs
- Figure amounts you must include as income and additional taxes you may owe if you fail to be an eligible individual
An HSA is a great tool for paying health related expenses. If you are interested in opening a Telhio HSA, or have more questions, contact us for support.
Rates effective Midnight on Monday, August 10, 2020
* APY = Annual Percentage Yield. Fees such as a penalty for early withdrawal on Share CDs may reduce earnings. Minimum of $250.00 required to earn interest on Share Savings. Telhio Savings account (non CD) products are variable rate and the dividend rate for the current quarter is declared at the last monthly Board of Directors meeting of the quarter.
**For detailed questions regarding tax publications, consult a tax specialist.