A Health Savings Account is designed for businesses that offer an HSA-qualified high deductible health plan (HDHP). An HSA is a tax-exempt account that can only be used to pay qualified medical expenses.
- Tiered interest rates based on collected balances give the employee the ability to earn additional income
- HSA funds are easily accessible with HSA checks or debit cards
- Complimentary first order of HSA checks
- Monthly statements with check images
- Access account through First Citizens online banking and First Connection telephone banking
- Tax advantages include:
- Tax deductions for HSA contributions for employees
- HSA earnings excluded from taxable income for employees
- Tax-free withdrawals for qualified medical expenses for employees
- Accumulated interest is tax-free or tax-deferred
- All contributions made by employers are exempt from payroll taxes but are subject to W-2 reporting
- Minimum opening deposit $100
- Low monthly fee of $3
- Interest earned on daily collected balances
- Certain federal guidelines must be met to qualify for this account. Federal tax benefits are determined by IRS rules. Check with your tax advisor for state rules regarding HSAs.