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A Healthy Way to Manage
Medical Expenses
Healthcare costs are rising. Wouldn't it be nice
if you could set aside money to cover your medical
expenses, tax free? You can, with a Heath Savings
Account (HSA) from Cambridge State Bank. If you
are enrolled in a high deductible health plan, an HSA
offers the tax advantages associated with a Flexible
Spending Accounts and Health Reimbursement Accounts and
enables you to spend the money you save, as you choose. |
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Health Savings Account
Advantages
- Portability - It's your
account, and you take it with you if you switch employers.
- Tax savings - Your
contributions to the HSA are made with tax deductible or pre-tax
dollars, so you will pay less in income taxes.
- Control - You can use
the funds in your HSA to pay for any qualified medical expenses, as
defined by the IRS. Funds may be used to reimburse qualifying health
expenses, tax free.
- Savings and Investments
- Unlike premiums, unused HSA dollars remain in the HSA until you
use them later.
- Funds are not restricted-
You may use funds toward non-medical expenses on a taxable basis.
- No time limits - There
are no time limits controlling when you spend your HSA dollars -
your savings can accumulate to cover future expenses
- Employer funds - Funds
may be supplemented by your employer*
- Flexible funding: Unlike
other types of tax-advantaged accounts, family members, or any other
person can make contributions to your account, as long as they meet
IRS guidelines.
- Added coverage: Your HSA
can be used to fund certain health coverage premiums, including
COBRA, long-term care and coverage while receiving compensation for
unemployment.
*Please check your plan materials to determine
whether your employer will be making supplemental contributions to
your account.
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