A Health Savings Account (HSA) is an account that individuals can set aside money to save for future medical expenses. An HSA is a tax-exempt account established for the purpose of paying medical expenses in conjunction with a High-Deductible Health Plan (HDHP).
A Health Savings Account from First National Bank combined with a high deductible health plan from your insurance provider can reduce healthcare costs, and provide you with a tax-advantaged, lifetime medical savings account.
Benefits of Owning a HSA
HSA funds roll over from year to year and always belong to you, growing tax deferred. Funds can be used for medical expenses and at the age of 65 can be withdrawn penalty-free for any reason.
A HSA debit card can be used to pay medical expenses at the point of service. You can take advantage of direct deposit to add money to your HSA.
HSAs give you greater freedom when making healthcare choices. You can also decide how much and when you want to contribute to your HSA.
HSA deposits are tax deductible and can be used to pay for medical expenses at any time. We recommend that you consult a tax advisor for details.
First National Bank HSA Features
- Includes a checking account that has no set-up fee, no annual fee, and no monthly maintenance fee*
- Interest is earned monthly with a tiered rate
- Free debit card
- Free online statements
- Free online access
- Minimum opening balance is $100
*If the balance is below $500, there is a $5 fee
HSA contributions for 2020 will need to be made by April 15, 2021. Please make sure you contact the bank for any previous year contributions!
In addition to the contribution limits listed above, an annual HSA 'Catch up Contribution' of $1,000 is available for individuals age 55 and older. If contributions are also being made by your employer, you will need to factor in that amount when making your own contributions.
Once you turn 65 or beginning the month you apply for Medicare, whichever comes first, you are no longer eligible to make contributions to your HSA. If you are turning 65 this year, you may be able to make a prorated contribution. Consult with your tax advisor to determine if you are eligible for a prorated contribution. After turning 65, you are still able to use your HSA to pay for qualifying medical expenses.
Not sure if a High Deductible Health Plan is right for you?
Visiting with your trusted insurance agent or your human resources department is the first place to begin.