Health Savings Account (HSA)
Keep high medical costs from obliterating your personal savings account. An interest-bearing health savings account (HSA) lets you save for medical expenses if you are covered under a high deductible health plan (HDHP).
Best of all, your money will stay with you throughout the years — even if you change careers. Make your health a priority and start saving today! Lee Bank has several conveniently located branches throughout the Berkshires.
- Tax-advantaged, high-interest savings account
- Tiered rates increase as balance rises
- $5 monthly service fee waived with $1,000 minimum balance
- Contributions are tax free or tax deductible*
- Interest grows tax free
- Withdrawals are tax free when used for qualified medical expenses**
- Funds rollover year-to-year automatically
- Easy access by check, debit card, online, in-person
- $25 minimum deposit to open
- Must be covered under a qualified, high deductible health plan
- Must not have coverage by another type of health plan
- Cannot be claimed as a dependent on another person's tax return
- Cannot be enrolled in Medicare
2023 offers individuals and families additional opportunities to save for current and future health care with a Health Savings Account (HSA):
- HSA holders can choose to save up to $3,850 for an individual and $7,750 for a family (HSA holders 55 and older get to save an extra $1,000 which means $4,850 for an individual and $8,750 for a family) – and these contributions are 100% tax deductible from gross income.
- Minimum annual deductibles are $1,400 for self-only coverage or $2,800 for family coverage.
- Annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $7,050 for self-only coverage and $14,100 for family coverage.
| Minimum Deductible |
Maximum Out-of-Pocket |
Contribution Limit | 55+ Contribution | |
|---|---|---|---|---|
| Single | $1,400 | $7,550 | $3,850 | $1,000 |
| Family | $2,800 | $14,100 | $7,750 | $1,000 |
For more detailed information on HSA plans and taxes, visit the U.S. Department of Treasury website at www.ustreas.gov or talk with your tax advisor.
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*Consult a tax advisor.
**Withdrawals for non-qualified medical expenses are subject to income tax and a 10% penalty. The 10% penalty is waived for persons 65 and over or who have become disabled.