Internal Revenue Service (IRS) regulations govern the circumstances under which you can own a Health Savings Account. You must:
- Be covered by a high deductible health plan
- Not be covered by another health plan
- Not enrolled in Medicare
- Not be claimed as a dependent on another person’s tax return
Similar to a traditional Individual Retirement Account (IRA), an HSA allows you to make tax deductible contributions that earn interest and grow tax-deferred. At Litchfield Bancorp, your HSA is FDIC-insured, has no monthly minimum balance requirement, earns interest, and is check and debit card accessible.
Over time, and quicker than you think, you’ll accumulate enough funds to painlessly cover surprise out-of-pocket costs like coinsurance. You’ll have peace of mind knowing a medical emergency won’t turn into a financial crisis. Plus, unlike a “use it or lose it” Flexible Savings Account (FSA), unused HSA funds roll over year after year.
* To determine your specific eligibility, contact your tax advisor or the IRS.