First
Community Bank is now offering Health
Savings Accounts and Debit Cards!
Health Savings accounts have many
benefits for consumers.
The accounts offer significant tax savings to those who
are
eligible. The funds can be used for a variety of
expenses
and all money left in the account at the end of the
year rolls
over. The account stays with you if you switch
jobs, move,
become unemployed or retire.
HSAs are available to individuals covered by a high-deductible health plan (HDHP). The individual can be self employed or be employed by a company offering an
HDHP.
HSAs offer triple tax benefits. You can deduct your HSA
contributions on your tax return, the money will grow tax free, and withdrawals are tax free when used for qualified medical expenses.
Non-qualified use of money in an HSA
account is subject to a 10% tax penalty.
Contributions can be made by you, your employer, or both. However, total contributions are limited on an annual basis.
You are not eligible for an HSA once you are enrolled in Medicare. If you had an HSA
before you were enrolled, you may keep it, but you may no longer contribute.
