Health Savings Accounts

A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment. You control this money, deciding how to spend it on your health care needs. Whatever you don’t spend is yours to keep — forever.

You may want to consider an HSA if you want to save additional tax-free money for retirement and could benefit from tax-deductible contributions. And, if:

• You currently participate or are thinking of participating in a high deductible health plan (HDHP).
• You’re self-insured or self-employed and want a cost-effective health insurance solution that also helps you build financial security.
• You’re a business owner and want to offer this alternative to your employees, while lowering your overall health insurance costs.

You can open an HSA if you:

• Are age 18 or older.
• Are covered by an HSA-qualified high deductible health plan.
• Do not receive Social Security benefits.
• Cannot be claimed as a dependent on someone else’s tax return.
• Are not covered by a non-HDHP health plan that provides any benefit that is also covered by your HDHP.

Cost Savings. Most people can reduce insurance premiums by choosing a low-premium HDHP. Rather than paying a health insurer, you pay yourself instead by putting the premium difference into your HSA and begin building financial security. Unused money stays in the account year to year, just like an IRA.

Tax Savings. Savings include deducting your contributions on your tax return, earning tax-free interest, and getting tax-free withdraw- als when used for qualified medical expenses.

Control. You decide how much money to put into the account, whether to save the account for future expenses or pay current medical expenses and which medical expenses to pay from the account.

Flexibility. Use the funds in your account to pay for current medical expenses, including expenses that your insurance may not cover, or save the money in your account for future needs.

Ownership. You own the money in the account. It’s yours. It becomes a financial asset, an asset you can use for retirement or even pass on to loved ones. The money stays with you, even if you switch jobs, change medical coverage, move to another state, become unem- ployed or retire.

You can use the money in your account to pay for medical expenses for yourself, your spouse or your dependent children, even if they are not covered by your high deductible health plan. Generally, you can use tax-free dollars on most medical expenses, such as:

• Medical care and services
• Dental and vision care
• Prescriptions
• Chiropractic visits
• Acupuncture
• Find more at www.irs.gov/publications/p969

There’s no better place to have your HSA than with Oak Valley. We’re separate from your employer and insurance company, so you can change jobs or insurance plans without changing your HSA. This gives you greater flexibility for your future and keeps things simple for you. In addition, our HSA has all the features and convenience you expect from Oak Valley It’s easy to open and easy to use. Plus, our HSA is FDIC-insured, pays interest, and the interest earnings are tax free when used to pay for qualified medical expenses.

Want more information about Health Savings Accounts? Call or visit us today! Or, visit the U.S. Department of Treasury’s website at www.treas.gov and search for “HSA.”