Wachovia's HealthAdvantageSM Health Savings Account (HSA) is a powerful financial planning tool to help you manage your healthcare expenses.
What Is It?
A Health Savings Account is a tax-advantaged account that can be used to pay for current or future qualified medical expenses. HSAs are offered to qualifying individuals only in conjunction with a high deductible health plan.
How It Works
Similar to a retirement savings plan, you contribute a portion of your paycheck into this account before taxes, subject to certain limits, reducing the amount of federal income tax you pay for the year. Then, you can make tax-free withdrawals to pay for qualified healthcare expenses such as:
Office visit co-payments
Insurance deductibles
Eligible Prescriptions
Dental care
Eye care, including glasses, contacts, and more
Benefits of the Wachovia HSA
Triple Tax Benefits - (1) The HSA can be funded on a pre-tax basis, (2) distributions made from the HSA for qualified medical expenses are tax-exempt and (3) investment income in the HSA grows tax-deferred and distributions of income for qualified medical expenses are tax-exempt.
Roll Over - With the Wachovia HSA, money left over in your account at the end of the year rolls over into the next year.
Portability - You can continue your account even if you change places of employment. Wachovia will still be here to service your account.
Control - You own your account and decide how to spend your healthcare dollars.
Flexibility - At age 65, or when you become covered by Medicare, the money in your account can be used for any reason without penalty. You still pay income tax on these distributions if they are for non-qualifying medical expenses.*
Start Saving Today for Future Healthcare Expenses
Open a Wachovia HSA today. Along with your 401(k) plan and other savings, it's another way to help meet your long-term financial planning goals.
If you'd like to apply for a Wachovia HSA, please call us at:
(877) 717-0100
Monday - Friday
7:00am - 7:00pm ET
* Distributions for non-qualifying medical expenses prior to age 65 or the time you become eligible for Medicare will be subject to ordinary income tax, as well as an additional 10% penalty.
The information contained herein and any information provided by employees and representatives of Wachovia Bank and its affiliates is for educational purposes only and does not constitute investment, financial, tax or legal advice. To the extent that information contained herein concerns tax matters, it is not intended or written to be used, for the purpose of avoiding penalties that may be imposed by law. Please contact your personal investment, financial, tax or legal advisor regarding your specific needs or situation.
