HEALTH SAVINGS ACCOUNT

A Health Savings Account or HSA combines a high deductible health insurance plan with a tax favored savings account. Money in the savings account helps pay for the deductible. Once the deductible is met, the insurance continues to pay . Money left in the savings account earns interest and is yours to keep.

A Health Savings Account is:

— Tax Deductible

Contributions to the HSA are 100% (up to the legal limit)- just like an IRA

— Tax-Free

Withdrawals used to pay qualified medical Expenses, including dental and vision, are Never taxed.

— Tax-deferred

Interest accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.

— HSA money is yours to keep

Unlike a Flexible Spending Account, unused money rolls over to the next year continuing to grow, tax deferred.

Deductible Minimums/Contribution Limits

2008

HDHP Deductible
Single $1,100
Family $2,200

HSA Contribution
Single $2,900
Family $5,800

2009

HDHP Deductible
Sing1e $1,150
Family $2,300

HSA Contribution
Single $3,000
Family $5,950

For more specific information about HSA’s go to www.usatreas.gov