Potential Savings with a Health Savings Account (HSA)
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Typical Health Plan
Aggregate family deductible: $1,000
Coinsurance: 80%/20% |
Health Plan with an HSA Common family deductible: $5,400
Coinsurance: 100% |
| Premium paid |
$8,200 |
$5,200 |
| Your share of medical care expenses ($1,500 claim and $550 in expenses for dental and vision care) |
+ $1,650 |
+ 2,050 |
| Expenses subtotal |
= $9,850 |
= $7,250 |
| Tax savings* on HSA deposits (Assumes a 28%** tax bracket on deposit of $5,400) |
+ $0 |
+ $1,512 |
| Tax savings subtotal |
= $0 |
= $1,512 |
| Net expenses (out-of-pocket minus savings) |
$9,850 |
$5,738 |
| Total net savings with HSA Plan |
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= $4,112 |
This example is based on the average health insurance premium of an individual with a family of four living in a metropolitan area, covered medical expenses totaling $1,500, and $550 in expenses for dental care, contacts and eyeglasses. Health insurance premiums vary substantially based on age, geographic location and other variables. Federal tax savings calculations assume that contributions are deducted from federal taxes. Withdrawals for non-qualified expenses prior to the age of Medicare eligibility are subject to a 10% tax penalty by the IRS.
*State Farm Bank® and its affiliates are not engaged in the rendering of tax, investment or legal advice. Federal and state tax regulations are subject to change. If tax, investment or legal advice is required, seek the services of a licensed professional.
**Your rate may vary.
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State Farm Bank®
Equal Housing Lender
