Personal Banking
Health Savings Account

 

An HSA gives you the ability to better afford a high deductible health plan and the opportunity to accumulate tax-deferred income

Health Savings Accounts (HSAs) are designed to help you save for future qualified medical and retiree health expenses on a tax-advantaged basis.

To participate in an HSA, you must be enrolled in a high-deductible health plan (HDHP). An HDHP is a comprehensive health plan with an annual deductible of at least $1,100 for an individual and $2,200 for a family. Several new rules apply to Health Savings Accounts for 2008. For details on these changes, see IRS Publication 969 at www.irs.gov.

HSA Application
HSA Designation of Beneficiary

Health Savings Account Advantages

Once you sign up for an HSA-eligible HDHP, open a Minnesota Bank & Trust HSA and receive the following benefits:

Tax Savings - An HSA provides you triple tax savings:

  • Tax deductible when you contribute to your account (tax-deferred if contributions are made by your employer)
  • Tax-free earnings through investment
  • Tax-free withdrawals for qualified medical expenses

Ownership - Unlike a Flexible Spending Account (FSA) with an employer, you own the money in your HSA account regardless of changes in your employment or marital status.

Investment Options - You can save the money in your account and let it accumulate from year to year, allowing your HSA to become part of your investment strategy. Earn more on balances $5,000 and over by investing in an HSA certificate of deposit.

Convenience -- You have instant access to funds needed to cover qualified medical expenses when you make purchases with your HSA VISA® debit card.

Contribution Limits

HSA contribution limits are revised each year to reflect cost-of-living increases. Contributions for a particular tax year can be made as late as April 15 of the following year.


2009 HSA Contribution Limits
 
Individual
Family
Under age 55
$3,000
$5,950
Age 55+
$4,000
$6,950

2010 HSA Contribution Limits
 
Individual
Family
Under age 55
$3,050
$6,150
Age 55+
$4,050
$7,950

Account Features

HSA Checking Account
Your HSA money is tax-free as long as it is used to pay for qualified medical expenses. If you use the money for any other reason, you will be required to pay income tax and a 10% tax penalty on that amount (you will not pay a penalty if you are disabled or age 65 or older). Qualified medical expenses are services that are typically covered by a health care plan, such as office visits, hospitalization, prescription drugs, and vision expenses. For a complete list of IRS-allowable health care expenses, refer to IRS Publication 502 "Medical and Dental Expenses" available at www.irs.gov. under "Forms and Publications."

  • Minimum opening deposit of $25
  • Free debit card for purchases*
  • Earns tiered interest. Save more, earn more!
  • Free Online Banking
  • Free Bill Pay
  • Free eStatements
  • Avoid service charges by maintaining a $2,500 account balance and using your debit card for purchases

*Fee for lost or replacement card may apply.


HSA Certificate of Deposit

  • Minimum balance of $5,000
  • 1-, 3-, and 5-year terms available
  • Earn a competitive interest rate