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Health Savings Accounts

Health Savings Accounts

A Washington Trust Bank Health Savings Account (HSA) is a tax-exempt account established for the purpose of paying or reimbursing qualified medical expenses of you, your spouse and your dependents. And contributions to an HSA are tax deductible, the earnings grow tax deferred, and distributions to pay or reimburse qualified medical expenses are tax free.

Tax Advantages

HSAs allow you to make tax deductible contributions. Earnings, including gains, in the HSA are tax deferred. Plus, your distribution (the contributions and earnings you withdraw) are tax free as long as they're used to pay for qualified medical, dental, and vision expenses.

Flexibility in Spending

You can use the money in your HSA to pay for—or reimburse—qualified medical, dental, and vision expenses for you and your family members. Those expenses could include health insurance deductibles, copayments, certain prescription medications, and out-of-pocket expenses.

Year-to-Year Savings

You've heard the phrase "use it or lose it." Well, an HSA isn't like that at all. Your HSA balance will carry forward year after year, allowing you to budget for your health expenses and build up your savings to cover qualified medical, dental, and vision expenses when the need arises.

Individual Ownership

An HSA is owned by you, not your employer. So, it's your responsibility to maintain the HSA. Ask a Washington Trust Bank representative for more details.

Additional product information and details for Health Savings Accounts
Health Flexible Spending AccountHealth Reimbursement ArrangementHealth Savings Account
What type of health plan is required?Any type of planAny type of planHDHP required IRS-defined parameters
Who owns the account?EmployerEmployerEmployee
Who can fund the account?EmployeeEmployeeEmployee, Employer, Others
Can the account accrue interest?NoYes (but not typical)Yes
Do assets carry over or roll over to the next plan year?LimitedDepends on how the plan is set upYes
Is the account portable?NoNoYes
Is there a catch-up contribution provision?NoNoYes