Health Savings Account (HSA)

 

Piggy Bank

Save Today For All Your Healthcare Cost Challenges.

Whether you are an employer seeking the best possible healthcare coverage package for your employees, or an employee desiring the tax advantages and additional safety net provided by a Health Savings Account (HSA), Home State Bank offers the right solution with the right benefits.

 

Account Holders
For those with a high-deductible health plan (HDHP), Home State Bank offers Health Savings Accounts (HSAs). Health Savings Accounts can help you pay for qualified medical expenses and combat increases in health insurance costs. There are tax advantages, and contributions may be made by you, your employer, or anyone else, up to your maximum contribution limit.

 

You may want to consider a Health Savings Account if:

  • You're self-insured or self-employed and want a cost-effective health insurance solution that also helps you build financial security.
  • You're a business owner and want to offer this alternative to your employees while lowering your overall health insurance costs.
  • You currently participate in or are thinking of participating in, a high-deductible health plan (HDHP).
  • You want to save additional tax-free money for retirement.
  • You could benefit from tax-deductible contributions.

 

Benefits of Using a Health Savings Account

Account Ownership
Funds are portable in the case of a change in employers.

Security
Your high deductible health plan and HSA protect you against high or unexpected medical bills.

Flexibility in Funding
Contributions may be made by the employer, the employee, or any other person or nonperson (charity, etc.) up to your maximum contribution limit.

Tax-Free Savings
Unused funds can roll over into the next plan year or be saved for retirement.

Contribution Allowance
Contributions can be made for the prior tax year until April 15th of the following year. Your contribution limit is determined by your qualifying HDHP.

Tax Deductible Contributions
Contributions to your HSA (that are not from your employer) are tax deductible.

Tax-Free Earnings
Interest earned on the account will accrue tax-free within the HSA.

Tax-Free Withdrawals
Funds used for qualified medical expenses will not be taxed upon withdrawal.

Catch-up Contributions
If you are age 55 or older, you can also make additional catch-up contributions.

 

To open an HSA, you must meet the following criteria:

  • Be currently enrolled in a qualifying High Deductible Health Plan (HDHP).
  • Cannot be enrolled in Medicare.
  • Cannot be claimed as a dependent on someone else's tax return.
  • Cannot be covered under your own or spouse's employer-sponsored health care plan that is not a qualified HDHP.

 

Restrictions

  • HSA funds used for non-qualified medical expenses will be assessed a 20% tax penalty and will also be taxed as regular income.
  • Funds withdrawn after age 65 (or if you become disabled) are exempt from the 20% tax penalty- however, the funds will still be subject to income taxes if the funds are used for non-qualified medical expenses.

 

Health Savings Account Options

All Health Savings Accounts include:

  • Complimentary Online Banking with Bill Pay for 24-hour access.
  • Complimentary Mobile Banking gives you the freedom to access account information, transfer money, pay bills from a cell phone or mobile device.
  • Complimentary eStatements secure online, electronic versions of your account statements that you can view, search, save and print at your convenience.

 

View Personal Banking Brochure
 

 

Personal Health Savings Accounts

 

Health Savings Account

Opening Deposit

$100.00

Minimum Balance To Avoid A Service Charge

N/A

Interest

Variable Tiered Rate

Minimum Balance To Earn Interest

N/A

HSA Debit Card

Free

Checks

 

No Discount

Ready Reserve Line Of Credit

N/A