4 Benefits of a Mellon Bank HSA (Health Savings Account)

4 Benefits of a Mellon Bank HSA
Health insurance is a hard thing to come by in this country. The extremely poor or disabled American citizens can often use such programs as Medicaid to pay for their medical expenses. The rich and upper middle class can often purchase an expensive plan or pay for most of their costs out-of-pocket. Unfortunately, though, the middle class often have difficulty obtaining health insurance. Sometimes they can get it through their occupation as long as they pay a high deductible, but that deductible can sometimes be difficult to meet. Because of this, a health savings account opened through the Mellon Bank can be a useful way for Mellon Bank employees to pay for their medical expenses. Here is some more information on the Health Savings Accounts (HSA) that are offered through the Mellon Bank:

1. The Mellon Bank will contribute to your account.

One advantage to having a health savings account with the Mellon Bank is that they will contribute to your account in January of each calendar year in order to help you pay for any qualifying health-related expenses. For example, BNY Mellon will contribute $700 each year for an employee on the $30,000 plan or $1400 for an employee and their family. One important thing to note is that the contribution by Mellon will go down with each higher level of coverage. In the $30,000-$39,999 range Mellon’s contribution will be $600, and in the $40,000-$49,999 range the contribution will be $500. In other words, for each subsequent $10,000 increase in coverage the contribution by the Mellon Bank will go down another $100. The lowest amount that Mellon Bank would contribute would be under the $80,000 plan, and would be in the amount of $200 each January.

2. Employees are allowed to contribute.

Another great feature of the health savings accounts offered by the Mellon Bank is that the employee is also allowed to contribute to the fund. For example, the maximum annual contribution that an employee can contribute on the $30,000 plan would be $2,600 annually. That allowance will nearly double to $5,150 if the employee wishes to include their family. The annual contribution allowed will go up in $100 increments for each bracket for the employee’s own health care and in $200 increments for family coverage plans.

3. The employee does not pay federal taxes.

Another good feature to this HSA would be that the employee will not be required to pay any federal taxes on the money put into the account or taken out of the account. Certain states will also allow an employee to forego state income tax requirements from the deposits and withdrawals into an HSA as well.

4. An HSA often has a free roll-over designation.

The Health Savings Accounts offered through Mellon and many other plans offer you a free roll-over designation if you still have money left over for the current calendar year. Moreover, there are a number of ways to contribute to the HSA within the year. Some elect to do a “lump-sum” contribution while others decide to contribute to the plan through an extra payroll deduction.

Pros and Cons

Like everything else in life, there are advantages and disadvantages to utilizing this strategy for health insurance. An HSA will only work if the employee is enrolled in that account only. If you are enrolled in a health savings account that is in your spouse or domestic partner’s name you are not allowed to have one of your own (IRS rule). If you transition to a long-term disability status and become enrolled in Medicare you will no longer be able to contribute to the account. Finally, remember that your Health Savings Account is considered an asset and can be transferred to your beneficiaries or your estate if you pass away.

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