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Health Savings Account
What is a Health Savings Account?
Health Savings Accounts (HSAs) combine high deductible health
insurance with a tax sheltered savings plan. Money from the
savings plan can be used for most medical expenses or in meeting
your annual deductible. HSAs can reduce health insurance
premiums and enable the insured to build up funds to pay out of
pocket expenses for small and routine expenses. Federally
qualified HSAs are tax-deductible, tax-deferred, and tax-free.
Contributions
Contributions to your HSA can be made by either the employer or
the employee. All contributions are tax-deductible to the lesser
of 100% of the deductible or to the IRS maximum of $3,000.00 for
single coverage and $5,950.00 for family coverage for the year
2009.
Eligible Expenses
An eligible expense is defined as those expenses paid for as
described in Section 2 of the Internal Revenue Code.
Additionally, the IRS has allowed non-prescription drugs as
described in Rule 2003-102, 2003-38 I.R.B. 559. Professional
Bank, N.A. is not engaged in rendering tax advice. For more
information, please see IRS Publication 502 titled, Medical and
Dental Expenses, catalog number 15002Q. If tax advice is
required, seek the services of a tax professional.
Details of the Plan
- Minimum balance to open $50.00 or a direct deposit
arrangement
- Competitive interest rates
- Interest compounded daily and paid monthly
- Unlimited check writing
- Monthly Statements
- Free Debit Card
- Free Online Banking
- Free 24 Hour Voice access to account
- No Set up Fees
- $2.00 Monthly Fee if Balance falls below $2,500.00
- Designated for individuals or employers
- Account must be established and all documentation signed and returned before any deposits are excepted.
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Additional Information
If you would like to conduct more research on the subject of
Health Savings Accounts, we suggest you look at these websites:
http://www.treasury.gov/offices/public-affairs/hsa/
http://www.irs.gov/publications/p969/ar02.html
http://www.opm.gov/hsa/
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