Personal Solutions
Health Savings

A Health Savings Account (HSA) with Bank of Pontiac may be the perfect solution for you if you have a High Deductible Health Plan! HSA's were created by the Medicare bill and are designed to help individuals save for future qualified medical and retiree health expenses on a tax-free basis.


Eligibility

In order to be eligible for an HSA, you must be covered by a High Deductible Health Plan (HDHP), not covered by any other health insurance plan other than a HDHP, not enrolled in Medicare and cannot be claimed as a dependent on someone else's tax return. Minimum deposit of $100 is required to open this account.


High Deductible Health Plan (HDHP)

A HDHP is a health plan that satisfies both an annual deductible and out of pocket expense requirement. Based upon the 2014 requirements, Federal law requires that the health insurance Annual Deductible be at least $1,250 for Single Coverage and $2,500 for Family Coverage. In addition, annual Out of Pocket Expenses cannot exceed $6,350 for Single Coverage and $12,700 for Family Coverage.


Contributions

Contributions to your Bank of Pontiac HSA can be made by you, your employer or both. Your annual contributions are based on the number of months of HDHP coverage as of the first day of the month. All contributions are pro-rated and have limitations. For 2014, you can contribute up to $3,300 if you have Single Coverage and $6,550 if you have Family Coverage. If you are an eligible individual age 55 or older at the end of your tax year, your contribution limit is increased by $1,000.

Advantages of an HSA

  • Year to Year Savings: HSA balances automatically roll over from year to year, continuing to earn interest.
  • Control: You determine how much money you will contribute to the account within the guidelines and when to spend it.
  • Ownership: You own the account. Like an IRA, the funds will remain in the account from year to year. The account stays with you even if you change employment, marital status, medical coverage or even move to another state.
  • Tax Savings: Your contributions are tax deductible and if used for qualified medical expenses, distributions of basis and earnings are tax free!

Benefits of a Bank of Pontiac Health Savings Account

  • The account is easy to use! You have access to your funds through Bank of Pontiac Online Banking and checks.
  • FREE Online Banking and medical expense Bill Pay with your HSA
  • First order of HSA checks are FREE
  • Low $25 annual fee
  • Local, friendly service
For detailed information regarding Health Savings Accounts, please visit the Internal Revenue Service (IRS) website.    For more information about a Bank of Pontiac Health Savings Account, please call or stop by any of our convenient locations!

Refer to our services brochure for complete details regarding the services/accounts listed above.