Health Savings Account (HSA)
Two of the most important things in life are your health and your financial security. A First National Bank HSA helps you take care of both. You gain tax benefits and competitive interest while saving funds to use for medical expenses.
Your HSA is yours. You don't lose funds if you change jobs and money rolls over year to year. It's a savings account after all. Just one that comes with multiple advantages!
- Summary
- No setup or annual fees
- Earn competitive interest on balances of $1,000 and more
- Reduce your income tax*
- Withdrawals are tax free when used for qualified medical expenses**
- Money rolls over year-to-year automatically
- No "use it or lose it" policy
- HSA is owned by you, not employer
- Easy withdrawal access by check, debit, online, teller
- $100 minimum deposit to open
- FDIC insured
- $2.99 monthly fee
*Direct deposit from your paycheck will reduce your taxable earnings. If contributions are made after income was taxed, the amount deposited is tax deductible. Consult a tax advisor.
**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 contribution limits are:
- $3,100 for a single person
- $6,250 for a family
- A person age 55 or older may make an additional $1,000 in "catch-up" contributions
