Health Savings Account (HSA)
A Health Savings Account (HSA) at BankFive is a way for Massachusetts and Rhode Island individuals and families with HSA-qualified insurance (also known as a High-Deductible Health Plan, or HDHP) to make tax-deductible contributions into an account to pay for present, future, and retiree medical expenses.
Eligible individuals and employers deposit contributions into a Health Savings Account on a tax-favored basis. These contributions can then be used later as tax-free distributions to pay for qualified medical expenses.
Whether you are an account holder or employer in Massachusetts or Rhode Island, we are committed to providing smart tools to enhance your Health Savings Account at BankFive.
Why choose a High Deductible Health Plan (HDHP)?
The HDHP offers lower premium costs and may allow you to set aside tax-free dollars in a Health Savings Account (HSA) to pay for current or future healthcare expenses, or use to build funds for retirement. HDHP benefits include:
- lower health insurance premiums
- greater flexibility and control in how your healthcare dollars are spent
- ability to contribute to a tax-advantaged HSA
Why choose a Health Savings Account (HSA)?
A HSA is a tax-advantaged account established to pay for qualified medical expenses. HSA benefits include:
- control over your healthcare spending; pay for qualified medical expenses or save for future medical expenses or retirement
- remaining account balance will carry over from year to year
- contributions are tax deductible, and earnings along with withdrawals from a HSA are tax-free when used to pay for qualified medical expenses*
- the account is still viable if you change jobs or insurance coverage
Why choose a BankFive Health Savings Account?
In the SouthCoast of Massachusetts or Rhode Island communities, we are recognized as a trusted and smart bank. We provide a comprehensive HSA product with these benefits:
- FDIC-insured, interest-bearing savings account
- easy access to funds with a Visa® debit card(s) and HSA checks
- a dedicated call center available to answer your questions
- monthly electronic or paper statements available
*Taxes and penalties may apply under certain circumstances. IRS rules require that adequate documentation be retained to establish qualified medical expenses.
BankFive does not provide legal, tax, or investment advice to HSA account holders. Contact a qualified accountant, attorney, or investment advisor to seek advice based on your particular circumstances. Any tax information provided with this communication is not intended to be relied upon or used by any taxpayer for the purpose of filing taxes or avoiding penalties that may be imposed on the taxpayer.