Health Savings Account

Get ahead of medical expenses with a specialized account that pays interest and offers multiple tax benefits. Best of all, there’s never an obligation to spend the funds. Use the money for qualified expenses or save it — it’s up to you.

A Health Savings Account (HSA) is a tax-exempt account established for the purpose of paying or reimbursing qualified medical expenses for you, your spouse, and your dependents. Contributions to an HSA are tax deductible, the earnings grow tax deferred, and distributions to pay or reimburse qualified medical expenses are tax-free.

Washington Trust HSA accounts include:

• Flexibility in spending: You can use the money in your HSA to pay for or reimburse qualified medical, dental, and vision expenses for you and your family members. Those expenses could include health insurance deductibles, copayments, certain prescription medications, and out-of-pocket expenses.
• Individual ownership: An HSA is owned by you, not your employer. So, it's your responsibility to maintain the HSA. Ask a Washington Trust Bank representative for more details.
  
• Tax advantages: HSAs allow you to make tax-deductible contributions. Earnings, including gains, in the HSA are tax-deferred. Plus, your distribution (the contributions and earnings you withdraw) are tax-free as long as they're used to pay for qualified medical, dental, and vision expenses.
  
• Year-to-year savings: You've heard the phrase, "use it or lose it." Well, an HSA isn't like that at all. Your HSA balance will carry forward year after year, allowing you to budget for your health expenses and build up your savings to cover qualified medical, dental, and vision expenses when the need arises.