Health Savings Account
Do you have a high-deductible health plan? The Health Savings Account allows you to make contributions while earning tax-free interest and take tax-free distributions for qualified medical expenses.
- Individual must be covered by a HSA-eligible plan
- Must not be enrolled in Medicare
- No Income Limit
- HSA Plan will have a high deductible
Qualified medical expenses are defined by IRS Publication 502 Section 213(d). Some examples include: doctors' fees, prescription and non-prescription medicines, durable medical equipment, etc. These are expenses that can be incurred by you, your spouse, or your dependents.
HSA Contribution Limits
You can make a contribution to your Health Savings Account each year that you are eligible. The yearly limits are:
$3,550 Self-only coverage (2020)
$7,100 Family coverage (2020)
Individuals age 55 and older can also make additional "catch-up" contributions. The maximum annual catch-up contribution is $1,000.00.
An HSA is owned by an individual, not an employer. Your employer may choose to make contributions to your HSA as a part of your benefits package. However, if you are switching to a new job, the HSA will go with you.
The Health Savings Account at First National Community Bank is flexible and easy to use with the option of writing checks, using a debit card, or both. Your account earns interest and you can keep track of your account online.
- No minimum balance to open the account*
- Interest paid on balances over $499.99
- No charge annual banking
- First order of select checks complimentary
- Debit Card optional
- Quarterly statements with check images
*$2.50 service charge per Statement Cycle on accounts with balances under $3,000.00. $10.00 set-up fee.