Health Saving Accounts (HSAs)

Individuals enrolled in a high deductible health plan (HDHP), not enrolled in Medicare Part A and /or Part B and not claimed as a dependent on another person's tax return are eligible to open a Health Savings Account. The HSA account is an interest bearing checking account with a tiered interest rate. In accordance with the regulation, maximum contribution amounts are determined by the Internal Revenue Service and distributions may be made on demand. Each distribution is reported as an eligible medical expense. Account owners are responsible for detemining whether a distibutions is qualified under the IRS regulations.