Health Savings Account (HSA)

The tax benefits of HSAs are becoming widely popular. Individuals can save for future medical expenses on a tax-free basis. The account and funds are completely owned by the individual, so as an employer, there is no administrative burden. If you would like First National to visit your workplace to explain the benefits of a health savings account, contact us and we'll be happy to come to you.

Summary

• No setup or annual fees
• No minimum balance to open
• Earn competitive interest on entire balance
• Can have tax-free contributions deposited directly from paycheck
• If contributions are made after tax, the amount deposited is tax deductible

• Withdrawals are tax free when used for qualified medical expenses*
• Money rolls over year to year; no "use it or lose it" policy
• HSA is not tied to any employer
• Easy withdrawal access by check, debit, online, or teller

View our current rates.

*Withdrawals for non-qualified medical expenses are subject to income tax and a 10% penalty. The 10% penalty is waived for persons 65 and over or who have become disabled.

Eligibility

• Must be covered under a qualified, high deductible health plan
• Cannot be claimed as a dependent on another person's tax return
• Cannot be enrolled in Medicare

Contribution Limits

Contribution limits are set by the IRS. Current 2010 contribution limits are:

• $3,050 for a single person
• $6,150 for a family
• A person age 55 or older may make an additional $1,000 in "catch-up" contributions