Thursday April 24 , 2014

HSA ACCOUNT

Health Savings Accounts (HSAs) are designed to allow individuals or families who have health coverage under a qualified “high deductible health plan” (HDHP) to put money aside to save for future medical expenses. HSAs were established to give people more control over their healthcare. They are available to all eligible individuals, not just the employees of small businesses and the self-employed.

Neighborhood National Bank is pleased to provide you a convenient, easy to use solution for your Health Savings Account.


Your Neighborhood National Bank HSA offers the

following benefits:
  • No transaction fees
  • Free Visa® HSA Check Card to access your account
  • Monthly statements
  • Free Internet banking
  • Interest on your account

There are no set-up, transaction or annual fees for your HSA account.  The minimum to open the account is $100.  If you keep a balance of $1,000 or more in your HSA there is no monthly service charge.  If your balance is less than $1,000 there is a monthly service charge of $2.  There is no fee to close your HSA account.


Why should you contribute to an HSA? 

Consider these benefits.

  • HSAs are individually owned. If you should change jobs, the HSA goes with you. If you are no longer eligible for an HSA you can still make tax-free payments for qualified medical expenses. You will never lose the money in your HSA. It is your account.
  • If you don’t use the money in your HSA it accumulates, growing from year to year.
  • HSAs earn interest. The interest is not taxable.
  • The contribution to your HSA is deductible on your federal income tax even if you do not itemize (up to the maximum allowed per year).
  • Distributions are tax-free provided they are used for qualified medical expenses.
  • You can use funds in your HSA to pay for qualified medical expenses. You can also reimburse yourself for health insurance deductibles, co-payments, and other qualified out-of-pocket expenses for your family.
  • Your employer can make contributions. These contributions are deductible by you up to the maximum annual contribution.
  • Your spouse becomes the owner of your HSA upon your death. If you are not married your HSA is considered an asset and is no longer tax-free but is passed on to your beneficiary according to the terms you have established.


Contribution Options

You can make a contribution each year you are eligible. If your health plan changes or you become eligible for Medicare, you would no longer be able to make contributions. However, you can continue to use the money in your existing HSA account to pay for medical expenses. The money would not be taxed.
You can contribute up to the amount of your HDHP deductible but no more than:
$3,100 – self coverage*
$6,250 – family coverage*
* Maximum amounts for 2012 and will be adjusted annually for inflation


Catch-up Contributions

If you are 55 and older you can make additional contributions. The maximum annual catch-up contributions are as follows: 2010 and after – $1,000


Employers Can Set Up HSAs for Employees

Employers can make contributions to employee HSA accounts as an added benefit and to assist them in paying their medical expenses. The HSA is owned by the individual employee and is his or her responsibility to maintain.


Need more information about HSAs?

The Department of the Treasury has a website with information about Health Savings Accounts. Included on this site are answers to frequently asked questions and related HSA forms and publications. You will also find links to other helpful web sites. To access the site go to www.treas.gov and click on Health Savings Accounts.

Neighborhood National Bank Alexandria, MN
Neighborhood National Bank Alexandria, MN
Neighborhood National Bank Alexandria, MN
Neighborhood National Bank Alexandria, MN
Neighborhood National Bank Alexandria, MN
Neighborhood National Bank Alexandria, MN Neighborhood National Bank Alexandria, MN Neighborhood National Bank Alexandria, MN Neighborhood National Bank Alexandria, MN