It’s the time of year when employers and individuals are looking to save on their health insurance, control health care spending and reduce their taxes. SouthPoint offers Health Savings Accounts (HSA) and we wanted to bring attention to this product and its benefits.
Benefits of an H.S.A?
- An HSA is a tax-advantaged savings account available for people who are enrolled in a high-deductible health plan. Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA. Benefits include:
- Tax-free – Withdrawals to pay qualified medical expenses are never taxed.
- Tax-deferred- Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.
- Money is yours to keep (unlike a flexible spending account, unused money in your HSA isn’t forfeited at the end of the year).
- You can get tax deductible contributions when using payroll deduction
- Once you reach the age of 65 you can withdraw funds without a penalty.
- Can be used for Long-Term care
- HSA’s are not subject to Required Minimum Distribution (RMD) rules. This means that you are not required to start taking withdrawals at age 70 ½ as with other retirement products or pension programs.
Where can I find additional information?
- Online: You can go to https://www.irs.gov/publications/p969 this is a great tool and can answer most questions.
- Phone: Contact a SouthPoint at 877-794-6712
- In Person: Visit a branch near you
How do I open an HSA?
- Apply Online
- Over the phone with one of our Member Solutions Agents at 877-794-6712
- In person at any SouthPoint Branch