HEALTH SAVINGS ACCOUNTS

Members, their families, and business owners can all enhance their financial health with HSAs. The following are among their many advantages:

• Tax Benefits-
  • Pre-tax contributions and/or tax-deductible contributions.
  • Dividends accrue tax-free.
  • HSA funds for qualified medical expenses are not taxed.
• Growth- Unused resources roll over every year and continue to build tax-free.
• Portability- Regardless of coverage type, your HSA dollars are yours, no matter if you change jobs, switch insurance policies, or retire.
• Premium savings- In most cases, HSA-eligible insurance policies have lower prices.

Why choose Health Savings Accounts at America First?

• No fees.
• No minimum-balance requirements.
• Custom products to fit your unique needs- HSA Share Savings, HSA Money Market Savings, HSA Money Market Checking, and HSA Certificate Account options.
• Accessibility- You can utilize funds via Visa debit cards, free Online Banking, checks, and cash withdrawals.
• 24/7 account management- With free Online Banking, you can take control of your HSA, using features such as free Online Bill Pay, cashed check viewing, Online Statements, accessing IRS tax forms, and generating current and previous year account summaries.
• Service- We'll deliver your account with exceptional member service, something you've come to expect from America First.

There Are Four Requirements to Have an HSA:

• Must have a qualified high deductible health plan.
• Have no other major medical insurance coverage.
• Not be enrolled in Medicare.
• You can't be able to be claimed as anyone's dependent.

HSA External Resources and Links

At America First, we can help you set up a Health Savings Account, and we'll continue to assist you in managing it. Below, we have reference information from the Internal Revenue Service and the U.S. Treasury that will help you better understand your Health Savings Account and how it works.

Additionally, we have links to the U.S. Department of Health & Human Services for both men and women that offer information about taking control of your health and lifestyle.

IRS Links

• HSA Information - IRS #969
• Eligible Expenses - IRS #502

Health Information Links

• Women's Health Checklist
• Men's Health Checklist

HSA Glossary

Beneficiary- Individual receiving HSA funds following the account owner's death. There are primary and contingent beneficiaries.

Catch-up Contribution- Those with ages 55 and over are allowed an additional, $1,000 catch-up contribution.

Co-insurance- Amount an individual must pay when a deductible is reached. For example, 80/20 means that once the deductible is met, the insurance company pays 80% of claims, while the employee is responsible for 20%.

Contingent beneficiary- An individual receiving HSA funds if the account owner and the primary beneficiary die.

Deductible- Amount paid before any co-insurance takes effect.

Excess contribution- One that exceeds the HSA owner's maximum for the year. If not removed in a timely manner, the account owner owes a 6% excise tax.

HDHP- (high-deductible health plan) - To contribute to an HSA, the owner must be covered by a qualified HDHP. Certain deductible and out-of-pocket expense limits apply.

Mistaken distributions- HSA funds accidentally used for a non-qualified medical expense. The IRS allows mistaken distribution correction to avoid taxes or penalties.

Non-qualified distribution- HSA distribution used for a non-qualified medical expense. These are subject to taxation and 20% penalties. Refer to IRS Publications 502 and 969 for a list.

Primary beneficiary- He or she receives HSA funds when the account owner dies.

Prior-year-contribution- These are designated for the prior tax year up until the tax-filing deadline, usually April 15. To take advantage of such a contribution, HSA eligibility is required during that prior tax year.

Qualified distribution- HSA funds used for a qualified medical expense. Refer to IRS Publications 502 and 969 for a list.

Qualified HSA funding distribution- Funds from a Traditional or Roth IRA distributed into an HSA. This is a reportable movement, but it is not taxable as long as it's processed correctly.

Rollover- Funds movement from one HSA custodian, to the account owner, and then to another custodian. This is reportable but not taxable, as long as certain requirements are met. There is a 60-day time limit and only one rollover is allowed per 12-month period.

Transfer- Funds going directly from one HSA custodian to another. Since the account owner does not have constructive receipt of funds, this is not reportable and not taxable. There is no limit to the number of transfers.