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HSA – HEALTH SAVINGS ACCOUNTS

Health Savings Accounts

A Health Savings Account (HSA) is an account that allows you to save for future medical expenses while incurring other benefits such as:

  • Interest Earnings
    Your savings grow through investment earnings
  • Flexibility
    You use your pre-tax funds to pay current or future medical expenses.
  • Portability
    Your HSA stays with you regardless of change in employment or health coverage.
  • Ownership
    Unused balance carries over from year to year.
  • Triple tax benefits:
    • Tax-deductible contributions
    • Tax-deferred earnings
    • Tax-free withdrawals for qualified medical expenses

Health Savings Account Rates

Current as of 03/22/19
ACCOUNTAPY*RATE
HSA0.10%0.10%

Who May Have an HSA?

  • Have coverage under an HSA-qualified “high deductible health plan” (HDHP)
  • Have no other first-dollar medical coverage (with limited exceptions)
  • Are not enrolled in Medicare
  • Cannot be claimed as a dependent on someone else’s tax return

About High Deductible Health Plans (HDHPs)

You must have coverage under an HSA-qualified “high deductible health plan” (HDHP) to open and contribute to an HSA. Generally, this is health insurance that does not cover first medical expenses.

High Deductible Health Plan Limits

You must have coverage under an HSA-qualified “high deductible health plan” (HDHP) to open and contribute to an HSA. Generally, this is health insurance that does not cover first medical expenses.
 YEARSELF COVERAGE ONLYFAMILY COVERAGE
Minimum Deductible2018$1,350$2,700
Minimum Deductible2019$1,350$2,700
Maximum Out-of-Pocket Expenses2018$6,650$13,300
Maximum Out-of-Pocket Expenses2019$6,750$13,500

HSA Contributions

You can make a contribution to your HSA each year that you are eligible. HSA contributions are generally tax-deductible. The maximum annual HSA contribution limits for recent years are shown below.
 SELF COVERAGE ONLYIF AGE 55 OR OLDERFAMILY COVERAGEIF AGE 55 OR OLDER
2018$3,450$4,450$6,900$7,900
2019$3,500$4,500$7,000$8,000

Using Your HSA

You can use the money in the account to pay for any “qualified medical expense” permitted under federal tax law. This includes most medical care and service, and dental and vision care.

The following list is a sample of the qualified eligible medical expenses for HSA reimbursement.
(For more information, refer to Publication 502 on the IRS website at www.irs.gov.)

Acupuncture • Pediatrician • Ambulance • Podiatrist • Annual Physical Exam • Prenatal Care • Bandages • Prescription Medication • Chiropractor • Psychiatrist • Contact Lenses • Psychoanalyst • Dental treatment • Psychologist • Diagnostic Services • Specialists • Eyeglasses • Surgery • Gynecologist • Therapy • Hospital Services • Vaccine • Laboratory Fees • Vision Correction Surgery • Nursing Services • Weight Loss Programs • Obstetrician • Wheelchair • Optometrist • X-Rays • Orthodontist

You can use the money in the account to pay for medical expenses for yourself, your spouse, or your dependent children. You can pay the expenses of your spouse and dependent children even if they are not covered by your High Deductible Health Care Plan. HSA distributions not used for qualified medical expenses are subject to ordinary income tax and if taken before age 65, a 20 percent IRS penalty tax will be assessed unless due to death or disability.

How are HSA distributions taxed?

Qualified distributions from your HSA are excludable from gross income. Any other distributions are included in your gross income and are subject to an additional 20% tax on the amount included, except in the following cases:

  • Your death
  • Your disability
  • You reach the age of 65

Any HSA distributions that are not rolled over will be taxed as income in the year they are distributed, unless used for qualified medical expenses. HSA custodians/ trustees are not required to determine whether HSA distributions are qualified. The qualified medical expenses must be incurred only after the HSA has been established.

When is the contribution deadline for funding an HSA?

Any contributions for the taxable year can be made in one or more payments, at the convenience of the individual or the employer, at any time prior to the time prescribed by law (without extensions) for filing the eligible individual’s federal income tax return for that year, but not before the beginning of that year. For calendar year taxpayers, the deadline for contributions to an HSA is generally April 15 following the year for which the contributions are made. Although the annual contribution is determined monthly, the maximum contribution may be made on the first day of the year.

What happens to my HSA in the event of my death?

If you are married and your spouse is your beneficiary, the HSA becomes his/her HSA. If your beneficiary is not your spouse, the HSA ceases to be an HSA effective on the date of your death. The proceeds will be included in the beneficiary’s gross income for the year of death.

Three ways to make contributions to your HSA:

  • Pre-tax salary deductions – if your employer offers this benefit, payroll deductions are exempt from most taxes (Check with your employer)
  • Employer contributions – made directly to your HSA by your employer
  • Direct contributions
    – Transfer from a personal account in person or online
    – Mail in a deposit

Five ways to withdraw funds from your HSA:

  • Debit card
  • ATM
  • Checks
  • Teller
  • Online Bill Payment

FCN BANK LOCATIONS

Brookville

501 Main St.
P.O. Box 37
Brookville, IN 47012

ph. 765-647-4116
fax 765-647-3411

More Details

Connersville

105 W. 3rd St.
Connersville, IN 47331

ph. 765-825-7251
fax 765-827-4418

More Details

Batesville

1060 State Rd. 229 N.
P.O. Box 60
Batesville, IN 47006

ph. 812-934-9078
fax 812-933-0623

More Details

Sunman

226 N. Meridian St.
P.O. Box 460
Sunman, IN 47041

ph. 812-623-8900
fax 812-623-8903

More Details

Harrison

590 Ring Rd.
P.O. Box 511
Harrison, OH 45030

ph. 513-367-6111
fax 513-367-9222

More Details

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