Individual Choices for your Healthcare.

By establishing a Health Savings Account (HSA)—in conjunction with a high deductible health plan (HDHP)—you are taking healthcare savings back into your own hands to help make the decisions that are right for you by taking advantage of the following benefits:

 Tax-Free Benefits

HSAs allow you to make deductible contributions and accumulate earnings tax free. The distributions are also tax free as long as they are used for qualified medical expenses.

 Flexibility in Spending

HSAs are used to pay for or reimburse qualified medical expenses—from health insurance deductibles and co-payments to certain over-the-counter medications and out of-pocket expenses—for you and your family members.

 Year-to-Year Savings

You have heard the phrase, “Use it or lose it.” Well, an HSA is not like that at all. HSA balances automatically roll over from year to year, allowing you to budget for health expenses and build up savings to cover qualified medical expenses when the need arises.

 Individual Ownership

An HSA is owned by you and is your responsibility to maintain. Please call us or stop in to hear more about it.

 Contribution Options

Although this is an individual account that you may contribute to and goes with you from career to career, your employer may choose to make contributions to an HSA as an added benefit to you.

 You may take a once-in-a-lifetime tax-free distribution from an IRA to fund an HSA.

The maximum annual contribution amount is the standard limit. Additionally, you are eligible for a “catch-up” contribution if you are age 55 or older by the end of your taxable year and have not enrolled in Medicare. The chart that follows shows the contribution limits.

Distribution Options

The convenience of paying a qualified medical expense with a check or debit card may be an option available to you.

Contact your local branch today to open a Health Savings Account or for more information!

Take a look at our HSA Straight Answers to your HSA Questions Brochure (Adobe Reader required--Free download here)

 The above information is  intended to provide general information on federal tax laws governing HSA’s.  It is not intended to provide legal advice or to be a detailed explanation of the rules or how such rules may apply to your individual circumstances or under you state tax laws.

 For specific information, you are encouraged to consult your tax or legal professional.  IRS Pulication 969, Health Savings Accounts and Other Tax-Favored Health Plans, the instructions to IRS Form 8889, and the IRS’s web site, www.irs.gov, may also provide helpful information.