Health Savings Account
A Health Savings Account (HSA) is a tax-advantaged account that can be established by eligible individuals covered under a high-deductible health plan to save and pay for qualified medical expenses. Examples of qualified expenses include co-pays, hospital visits, prescriptions and certain non-prescription drugs, and some insurance premiums such as Long Term Care insurance.
Contributions made on your behalf are fully tax-deductible, earnings are tax-deferred and distributions used to pay for qualified medical expenses are tax-free, regardless of your income.*
A key benefit of a Health Savings Account is that the contributions you make belong to you with no spending deadline. All unused contributions stay in your account, earning tax-deferred interest.
Features of Health Savings Account:
- $50 one-time set-up fee**
- $50 minimum deposit to open the account
- Free Visa® Check Card
- Free Online Banking for viewing your account information
* Consult your tax advisor regarding the tax advantages of a Health Savings Account.
** Waived if you have a First National Bank South Dakota checking account.