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-deductibe contributions
- Tax-free earnings on the HSA
- Tax-free withdrawls 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.
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