Health Savings Account (HSA)
An HSA is a tax exempt account designed to help individuals with a High Deductible Health Plan (HDHP) pay for qualified medical expenses now or in the future. Contributions can be made by the employer and/or the employee.
Benefits to Employers
Employers can save on health insurance by adopting a High Deductible Health Plan combined with an HSA. Employer benefits:
- Lower premiums for the employee health care plan
- A reduction in payroll taxes - all contributions to the HSA are pre-tax, which lowers the gross payroll
Benefits to Individuals
Individuals gain flexibility in managing their health and money through:
- Tax-deductible contributions
- Tax-free earnings on the HSA
- Tax-free withdrawals from the HSA for qualified medical expenses
- Accumulation of HSA funds and earnings that roll over year to year.
There is no minimum balance to open an HSA account. Dakota Prairie Bank offers competitive rates on HSA accounts. Please call or stop in and talk to our friendly staff to find out the current rates.