A better way to cover High Deductible Health Plan expenses.
Your High Deductible Health Plan (HDHP) is probably less expensive than traditional insurance, however,
deductible amounts may be substantial. Our Health Savings Account (HSA) is a tax-advantaged account that helps you save for medical expenses while reducing your taxable income as contributions are not subject to federal income tax.
Advantages of a Kearny Bank HSA
- Contributions can be made by you, your employer, or both.
- If you claim a family member on your taxes HSA funds may be used for their qualified expenses even if you have just single coverage.
- Funds earn TAX-FREE interest.
- Funds roll-over at year end and keep earning interest.
- The account is portable and money remains available even if you change health plans, employers or retire.
- After age 65 funds can be withdrawn for any reason without penalty.
- Distribution will be subject to federal tax unless used for qualified expense.
- Kearny Bank will issue a convenient debit card allowing for timely payments.
You must be covered by a high-deductible health plan
and meet the following criteria:
- May not be covered by another health plan that is not an HDHP (except certain plans that provide specific limited types of coverage.)
- Are not enrolled in Medicare.
- Can not be claimed as a dependent on another person’s tax return.
How Does It Work?
You contribute up to a specified limit (i.e., currently $3,650 for an individual, $7,300 for a family in 2022.) Distributions may be taken at any time to pay for qualified medical expenses, defined as medical care not covered by insurance and incurred after you open your HSA. Expenses can be incurred by you, your spouse or qualified dependents.
Qualified medical expenses include medical, dental, vision, chiropractic, pharmaceuticals, and more!
- Distributions before age 65 that are used for non-qualified expenses will incur a 20% penalty and will be taxable.
- Contributions may not cover the total of your expenses.
- You must keep careful records to prove the use of withdrawals.
Add this to your total benefits package through Kearny @ Work without spending a dime!
Your employees can sign up through Kearny @ Work, our preferred business client program that offers an array of valuable banking benefits. It's a meaningful way to show your appreciation for their efforts and not increase your expenses.
Kearny Bank Debit Mastercard®
SecureAlerts: Establish alerts for instant access to purchase activity. Alerts can be set via our mobile app or Online Banking.
Mobile Wallet: Add your Kearny Bank Debit Mastercard to your mobile wallet for faster purchases in-store, online and in-app.
Customized Usage Control: Reduce debit card fraud, set spending limits, monitor and manage your card through our mobile app.
Lost or Stolen Debit Mastercard: If your Kearny Bank Debit Mastercard is lost or stolen, call us immediately, or control your card via your Mobile Banking app. During business hours call 800-273-3406. After business hours, call our afterhours hotline at 800-472-3272.
Please note, Kearny Bank does not provide legal or tax advice. Please contact your tax professional with any tax related questions. Visit the IRS.gov for further information.