HSA Account-Doctor with child

Health Savings Account (HSA)

Plan for unexpected medical expenses

A Health Savings Account is like a personal savings account, but the money in it is used to pay for your health care expenses. As a benefit, the money you deposit into your account isn't taxed.

  • Free online banking with bill pay, mobile and telephone banking
  • Free mobile deposit
  • Free ATM transactions at all Skowhegan Savings locations
  • Low minimum of $50.00 to open
  • Monthly service charge of $2.95 if balance is below minimum monthly average of $500
  • Free standard checks
  • Bank to bank transfers available with a service charge
Who can set up a health savings account?

 To qualify to open a health savings account (HSA) you must be under the age of 65, carry a high deductible insurance plan and answer 'no' to the following questions:

  1.  Do you have other health coverage (except permitted coverage)?
  2. Are you enrolled in Medicare?
  3. Are you claimed as a dependent on another person's tax forms?
What are some basic facts about contributing to an HSA? 
  • HSA contributions can be made with pre-tax money or after-tax money, which means that contributions are tax deductible.
  • Any interest earned on your account is tax free.
  • Contributions may be made by you, your employer or members of your family.
  • Contributions to an HSA can be lump sum or periodic.
  • HSA funds may be rolled over year to year.
How do HSA distributions work?

  • Withdrawals to cover you, your spouse or your dependents for any qualified medical expense are tax free.
  • Leftover funds that are not used for medical purposes may be used to supplement your retirement savings.
  • Non-medical related withdrawals made before the age of 65 are subject to a 10% penalty. After age 65, any non-medical withdrawals will be penalty-free but no longer tax free.

See your Personal Banker for full product disclosure.