Health Savings Accounts

Health Savings Accounts were created in response to the rising health insurance premiums. It is a special account owned by an individual where contributions to the account are to pay for current and future medical expenses.

Contributions to an HSA are federally tax deductible, the earnings grow tax deferred, and distributions for qualified medical expenses are tax free.

You are eligible to make or receive regular contributions if, in any month, you:

• Are covered under a high-deductible health plan (HDHP) on the first day of such month (see your health insurance agent for qualifying HDHP)

• Are not covered under another type of health plan that is not an HDHP (with some exceptions)

• Are not entitled to benefits under medicare

• May not be claimed as a dependent on another individuals tax return

Contributions to HSA can be made by the employer or the individual. Maximum amount that can be contributed to an HSA from all sources is the lesser of:

• Annual Plan deductible amount or

• Maximum specified in law (indexed annually)

  • $3,100 (self-only coverage) for 2012 and $3,250 for 2013

  • $6,250 (family coverage) for 2012 and $6,450 for 2013

For individuals age 55 and older, additional “catch-up” contributions to HSA allowed:

• $1,000 - 2012/2013

Other resources: US Department of Treasury

For more details, contact a retail banker.

Account Options
Current Rates
Savings Accounts
Checking Accounts
Certificates of Deposit
Individual Retirement Accounts
Health Savings Accounts
Debit Cards
VISA Gift Cards
Funds Availability Policy