Health Savings Accounts

Commercial Savings Bank offers Health Savings Accounts (HSAs) to eligible individuals. HSAs are the latest in tax-exempt medical benefits available to consumers. Health Savings Accounts are set up by you to pay out of pocket medical expenses. In order to be eligible for an HSA, you must have a high deductible health plan, you cannot be enrolled in Medicare, you cannot be claimed as a dependent on someone else's tax return, and you must not be covered by another high deductible health plan.

HSAs can provide significant tax benefits to eligible individuals. Not only can HSAs provide tax benefits related to paying qualified medical expenses, they may also provide benefits similar to many tax-favored retirement plans.

• HSA contributions by employer or employee are excluded from income.
• HSA earnings are tax-deferred.
• If used for qualified medical expenses, HSA assets are never taxed.
• Unused HSA assets may be used for retirement; however, they will be subject to a 10 percent penalty until the HSA account beneficiary turns age 65. If not used for medical expenses, they will be subject to income taxes.
• Upon death, HSA assets become the property of a named death beneficiary, or of the HSA account beneficiary's estate. A spouse may treat the assets as his or her own HSA, while non-spouse death beneficiaries must treat such assets as ordinary taxable income.