Deposit ProductsHealth Savings Accounts
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A Health Savings Account (HSA) is a tax-advantaged account that can be established by eligible individuals covered under a high-deductible health plan to save and pay for qualified medical expenses. Examples of qualified expenses include co-pays, hospital visits, prescriptions and certain non-prescription drugs, and some insurance premiums such as Long Term Care insurance.
Contributions made on your behalf are fully tax-deductible, earnings are tax-deferred and distributions used to pay for qualified medical expenses are tax-free, regardless of your income.*
A key benefit of a Health Savings Account is that the contributions you make belong to you with no spending deadline. All unused contributions stay in your account, earning tax-deferred interest.
Features of First Health Savings:
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No annual fees.
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One-time set-up fee.
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$100 minimum deposit to open the account.
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No monthly fee with $2,500 minimum daily balance.
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Free first order of custom-image checks.
What is a HSA?
A HSA is money put in a special account owned by an individual to pay current and future medical expenses.
Who is eligible for a HSA?
An eligible individual is someone who is:
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Covered by a High Deductible Health Plan (HDHP).
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Generally not covered by any health plan that is not a HDHP.
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Not enrolled in Medicare.
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Not eligible to be claimed as a dependent on another person’s income tax return.
Definition of High Deductible Health Plans
A health plan is a high deductible health plan (HDHP) if the plan satisfies both an annual deductible and an out-of-pocket expense requirement.
|
Year
|
Coverage
|
Minimum Annual
Deductible |
Maximum Out-of-Pocket
Expenses |
|
2007
|
Self
|
$1,100
|
$5,500
|
|
Family
|
$2,200
|
$11,000
|
|
|
2008
|
Self
|
$1,100
|
$5,600
|
|
Family
|
$2,200
|
$11,200
|
HSA Contribution Limits:
|
Year
|
Self
|
Family
|
Catch-up (age 55+)
|
|
2007
|
$2,850
|
$5,650
|
$800
|
|
2008
|
$2,900
|
$5,800
|
$900
|
|
2009
|
$1,000
|
Contributions may be made by:
- The individual.
- The employer.
- By others on behalf of the individual.
HSA Distributions
Qualified Medical Expenses are medical expenses that are:
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Incurred on behalf of the HSA owner, spouse or dependents.
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Incurred after an HSA has been established.
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Not covered by insurance.
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Paid by the HSA owner, spouse or dependent.
If a distribution is not used for Qualified Medical Expenses:
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The distribution amount will be included in income.
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A 10% penalty will be assessed; this penalty will be waived upon death, disability or attaining age 65.
Please see the terms and disclosures for additional information about rates, fees and other costs.
* Consult your tax advisor regarding the tax advantages of a health savings account.
