Soy Capital Bank's Health Savings Account is a tax-exempt savings account that works in conjunction with a qualified high deductible health insurance plan. It is designed to help you manage and save for your health care expenses.

HSA balances roll over from year to year, and the account is portable, meaning the funds belong to you even if you change jobs or retire. The funds are used only for qualified HSA medical expenditures as established by the IRS, with funding provided by the individual and/or their employer according to the annual IRS limits.

A debit card, or a starter kit of checks, is issued for the purchase of qualified HSA medical expenses.

​Compatibility

Verify with your health plan provider that your health plan is compatible. Annual requirements regarding minimum deductible and maximum out-of-pocket expenses for HSA-compatible health plans is set by the IRS.

Eligible Medical Expenses

The IRS Publication 502 describes and clarifies which healthcare services, equipment or medications are eligible.

In general, your HSA can be used for:

Expenses applied to your health plan deductible
• Dental care services
• Vision care services
• Prescription services
• Certain over-the-counter medications
• Certain medical equipment

Keep In Mind

• Funds used to pay for qualified medical expenses are always tax-free, regardless of age or HSA-compatible health plan coverage
• Prior to age 65, funds used to pay for non-eligible medical expenses are subject to normal income tax and a 10% penalty. After age 65, HSA funds may be withdrawn for non-eligible expenses with no penalty (regular income tax will apply)
• HSA funds can be used to reimburse yourself for past medical expenses if the expense was incurred after your HSA was established
• If you have questions regarding the eligibility of medical expenses, always contact a qualified tax advisor or the IRS

Tax Advantages of an HSA

Funds rollover each year, there’s no "use it or lose it," and the account is FDIC insured. But the biggest advantage is the tax savings. Many employers offer a payroll deduction option on a pretax basis. This reduces your taxable income by the amount you contribute to your HSA. By using your HSA, eligible medical expenses such as prescriptions, dental and vision are purchased tax-free. You can also reimburse yourself for your out-of-pocket eligible medical expenses from your HSA account. Interest on HSA funds grows on a tax-deferred basis. Interest earned on an HSA is not considered taxable income when the funds are used for eligible medical expenses. The only time you may pay taxes or penalties on your HSA funds is if you make a non-eligible purchase, or if you contribute more than the yearly maximum contribution limit. However, both misuses can be corrected free of tax penalties by April 15th of the following calendar year.