Health Savings Accounts

What are Health Savings Accounts?

Health Savings Accounts (HSAs) are tax-favored consumer savings arrangements for individuals and families covered by high deductible health insurance plans (IRC Sec. 223). HSAs were created by the Medicare Prescription Drug and Modernization Act of 2003, and became available January 1, 2004.

HSAs allow for tax-deductible contributions, and tax-free distributions of basis and earnings if distributed amounts are used for qualified medical expenses. Participants need not be self-employed or employed by small employers to qualify for HSAs, and there is no sunset (termination) date for the HSA program.

If you would like to enroll or learn more about Citizens Bank’s HSA product, please contact a Customer Service Representative at 229-924-4011.