Capital Financial Inc Health Savings Account

It helps you to be prepared for unexpected medical expenses when they happen. One of the best ways to do this is through a Health Savings Account (HSA).

An HSA is a type of savings account for you to put aside money on a pre-tax basis to pay for qualified medical expenses including deductibles, copayments, coinsurance, and some other expenses. HSA funds generally may not be used to pay premiums.

With an HSA you can save money.

  • Contributions to your account may be tax-deductible on your federal income tax return, and usually on your state income tax return as well.
  • You can pay for qualified medical expenses with tax-free withdrawals.
  • Your employer may offer a payroll deduction option to help you make contributions on a tax-free basis through your employer’s cafeteria plan. In addition, your employer may also decide to contribute.
  • Unlike Flexible Spending Accounts, your HSA has no “use it or lose it” requirement and remains active if you change jobs or retire.

With an HSA you can enjoy these benefits:


Save for an emergency

HSAs are a great option for those who want a financial safety net in case of unexpected medical costs.


Lower your premiums

By raising your insurance deductible and offsetting the risk with HSA balances, you can lower your monthly premiums.


Build a nest egg

Save tax-free for your retirement as an alternative to an IRA.


No usage requirements

Even if you change jobs or retire, your funds will remain unchanged if they aren’t used.

Am I Eligible for an HSA?

You’re eligible if for any one month you:

  • Are covered under a high-deductible health plan (HDHP) on the first day of that month.
  • Are not already covered under another type of health plan that is not an HDHP. (certain exceptions apply)
  • Aren’t enrolled in Medicare. (generally, are under 65 years old)
  • Cannot be claimed as a dependent on another individual’s tax return.

What medical expenses are covered with an HSA?

Standard medical services: office visits and annual medical physicals

Prescriptions, many over-the-counter medicines, and health care products

Preventive and restorative dental care, orthodontia for children and adults

Eyeglasses, contact lenses, and laser eye surgery