Health
Savings Account
A Health Savings
Account (HSA) with Bank of Pontiac may be the perfect solution for
you if you have a High Deductible Health Plan! HSA's were created
by the Medicare bill and are designed to help individuals save for
future qualified medical and retiree health expenses on a tax-free
basis.
Eligibility
In order to
be eligible for an HSA, you must be covered by a High Deductible
Health Plan (HDHP), not covered by any other health insurance plan
other than a HDHP, not enrolled in Medicare and cannot be claimed
as a dependent on someone else's tax return. Minimum deposit of
$100 is required to open this account.
High
Deductible Health Plan (HDHP)
A HDHP is a
health plan that satisfies both an annual deductible and out of
pocket expense requirement. Based upon the 2008 requirements, Federal
law requires that the health insurance Annual Deductible
be at least $1,100 for Single Coverage and $2,200 for Family Coverage.
In addition, annual Out of Pocket Expenses cannot exceed
$5,600 for Single Coverage and $11,200 for Family Coverage.
Contributions
Contributions
to your Bank of Pontiac HSA can be made by you, your employer or both.
Your annual contributions are based on the number of months of HDHP
coverage as of the first day of the month. All contributions are pro-rated
and have limitations. For 2008, you can contribute up to $2,900 if
you have Single Coverage and $5,800 if you have Family Coverage. Individuals
age 55 and older can make additional "catch-up" contributions.
The maximum annual catch-up contribution in 2008 is $900. These amounts
are adjusted annually for inflation.
Advantages
of an HSA
- Year to Year Savings: HSA balances automatically roll over from
year to year, continuing to earn interest.
- Control: You determine how much money you will contribute to
the account within the guidelines and when to spend it.
- Ownership: You own the account. Like an IRA, the funds will remain in the account from year to year. The account
stays with you even if you change employment, marital status, medical coverage or even move to another state.
- Tax Savings: Your contributions are tax deductible and if used for qualified medical expenses, distributions
of basis and earnings are tax free!
Benefits
of a Bank of Pontiac Health Savings Account
- The account is easy to use! You have access to your funds through Bank of Pontiac Online Banking and checks.
- FREE Online Banking and medical expense Bill Pay with your HSA
- First order of HSA checks are FREE
- Low $25 annual fee
- Local, friendly service
For detailed information
regarding Health Savings Accounts, please visit the US Treasury website
at www.treas.gov/offices/public-affairs/hsa/. For more information
about a Bank of Pontiac Health Savings Account, please call or stop
by any of our convenient locations!
Refer to our
services brochure for complete details regarding the services/accounts
listed above.
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