Signed into law by President Bush in 2003, a Health Savings Account is designed as a tax-exempt method to help individuals and their dependents save and pay for qualified medical expenses now and in the future. Examples of qualified expenses may include co-pays, hospital visits, prescription and certain non-prescription drugs, and some insurance premiums such as long-term care insurance.
Benefits of Keeping Your HSA with FNBM
FREE Visa Debit Card
First box of duplicate checks are free
No Monthly Fees
No Minimum Balance
No Limit of Monthly Transactions
One time setup fee of only $10.00
On-site business set-up is available for employers
Variable Interest Rate: Interest earned daily on the balance in your account. Interest is compounded and credited quarterly. Interest rates vary by account balance and is paid on tiered levels (please contact us for our current rates).
Eligibility Requirements
You must be covered by a High Deductible Health Plan (HDHP).
You must be under the age of 65 to contribute and not enrolled in Medicare..
You must not be covered by any other health plan that is not an HDHP (certain exceptions apply).
You must not be claimed as a dependent on another individual’s tax return.
Advantages of an HSA
Security - Your high deductible health plan (HDHP) and HSA protect you against high or unexpected medical bills.
Affordability - Health insurance plans with a high deductible generally have lower premiums and the difference can be deposited right into your HSA.
Flexibility - Use the funds for current medical expenses, including those your insurance may not cover, or save it and carry your balance forward for future needs.
Ownership - Much like an IRA, funds remain in the account from year to year with no “use it or lose it” penalties.
Portability - Accounts are completely portable even if you change jobs or become unemployed, change your medical coverage, change marital status, or move to another state.
Control - You have complete control over how and when you will use your HSA dollars including how much you want to contribute, whether to pay all or some medical expenses from the account, and what company will handle your savings account. Decisions on how to spend the money are made by you without relying on a third party or a health insurer.
Tax Savings - HSAs provide three major tax benefits: deductions when you contribute, tax-free investment earnings, and tax-free withdrawals on qualified medical expenses. Please consult your tax advisor for more detailed information.
Contributions
You and/or your employer can make contributions either by check or by electronic deposit or transfer. Contributions for the current year can be made until April 15th of the following year. The maximum contribution limits are listed below.
Maximum Contributions
Year
Single Coverage
Family Coverage
Catch-Up Provision Over 55
2007
$2,850
$5,650
$800
2008
$2,900
$5,800
$900
Request More Information
Employers and individuals are encouraged to contact us to request more information and materials.