Health Savings Account
This interest-bearing account helps you save for your health care deductible, while avoiding federal income tax at the time of deposit.
Health Savings Accounts can be used in conjunction with a High Deductible Health Plan (HDHP). A HDHP typically has lower premiums than other types of health plans but also has higher deductibles. You must pay all medical expenses until your deductible is met. The exception to this would be preventative care which is almost always covered.
- No account maintenance fees.
- Electronic Statements delivered at our secure website.
- Convenient access to funds through our free debit card and on line bill payment.
- Tax free distributions if used in accordance with federal law.
- Ability to carry over balances from year to year.
- Ability to maintain account even if coverage or employment changes.
- Tax deferred earnings.
- Earn monthly compounded interest.
- Minimum opening balance: $50.00.
- No minimum monthly Balance to maintain.
- Must be covered by a qualified high deductible health plan to be eligible.
- HSA accounts are individual accounts only and can be assigned to a beneficiary upon death within an accompanying Individual Retirement Account agreement.
*APY - Annual Percentage Yield
- Regulation D transaction limitations do not apply to this account.
- Withdrawals are limited by law.
- Please see you tax accountant for details.
- Self Coverage Contribution limits for 2011 are $3,050 for 2012 $3,100.
- Family Coverage Contribution Limits for 2011 are $6150 and $6,250 for 2012.
- An eligible individual who is age 55 or older may make additional HSA contributions - called catch-up contributions - up to $1,000 annually and may continue to make catch-up contributions until enrolled in Medicare.
- You may contribute to your HSA until the tax return due date which is typically April 15th.
Non-qualified HSA Distributions
- HSA distributions not used for qualified medical expenses are subject to ordinary income tax and if taken before age 65, a 20% IRS penalty tax could result if not used for qualified expenses.
Funds held in an HSA account may be used for qualified medical expenses as defined in United States tax law. These expenses include the majority of medical, vision or dental expenses. Additionally, although HSA account balances cannot be used to pay health insurance premiums, they may be available to be used to pay qualified long term care premiums after age 65. Please be aware that any funds withdrawn from an HSA account that are not used for qualified medical, vision or dental purposes are typically subject to ordinary income tax and if taken before age 65 they are also subject to a 20 percent IRS penalty unless due to a disability or death.
*BALANCE COMPUTATION METHOD
APY=Annual Percentage Yield. We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day. The daily balance that we use when calculating interest is the collected balance. That means we only include those funds for which we have actually received payment when we determine the balance on which interest is paid. Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks).
- Rate Information
Determination of Rate
At our discretion, we may change the interest rate on your account.
Frequency of Rate Change
We may change the interest rate on your account at any time
- 0.15% interest rate with an annual percentage yield (APY) of 0.15%*
- Interest rate and annual percentage yield are subject to change
- No maximum or minimum interest rate limits
Compounding and Crediting
Interest is compounded and credited to your account monthly. If you close your account before interest is credited, you will not be paid the accrued interest.
- Balance Requirements
- You must deposit $50.00 to open this account
- No Monthly Minimum Balance to maintain