Additional information of Health Savings Account
To apply for the Keybank Health Savings account, you need a trustee and to be enrolled in high deductible health insurance. This option cannot be covered by a PPO or HMO (Medicare).
The 2023 requirement is $1,500 for individual coverage and $3,000 for family coverage, as detailed on the IRS website. Unlike an IRA, the HSA does not require you to have any income. The HSA does not require a minimum deposit and includes daily compound interest.
If you don't want to be charged the $10 annual fee, you must meet one of two basic conditions: you must have a checking account or your employer must have a Keybank business checking account and be enrolled in the HSA referral program.
The Health Savings account also comes with a monthly fee, which can be either $2.50 or $5. You can waive this fee by becoming more closely tied to the bank or by maintaining a minimum balance of $500 per month.
The lower fee applies if you do not have a checking account and use direct deposit; the higher fee is for those who do not use direct deposit.
Along with the pre-tax deduction and tax-free withdrawals, there are other advantages of the KeyBank HSA:
- You can carry your balance forward to the next year.
- You or your employer can make contributions
- You are allowed to keep the account, even if you are laid off or your employer relocates.
The KeyBank Health Savings account makes a lot of sense as you or your partner gets older. Like this one, there are other banking products offered by other reputable institutions that you can compare in detail using Busconomico's website.
Español: Cuenta de ahorro Health Savings (HSA)