Health Savings Accounts

Consider the advantages and benefits that a Health Savings Account from United Commerce Bank may provide for you.

Health Savings Accounts (HSAs) are the latest in affordable healthcare for individuals. HSAs were developed to manage health care expenses without risking your health care coverage, while taking advantage of tax benefits.

An HSA is a tax-exempt account that allows an individual to accumulate savings to pay for current and future qualifi ed medical expenses. HSAs must be used in conjunction with a High Deductible Health Plan (HDHP).

Annual contributions reduce taxable income, allowing qualifi ed medical expenses to be tax-free. Money saved in an HSA grows tax-deferred until age 65. It is your responsibility to determine whether a medical expense is qualified. (IRS guidelines should be given to you by your insurance carrier)

Benefits:
-	Available to individuals
-	Minimum opening deposit, $100.00
-	One time set-up fee $25.00 (initially)
-	No minimum balance requirement
-	No monthly service fee
-	Unlimited check writing
-	Free debit card
-	Free Internet Banking
-	Free Online Bill Pay
-	Tiered-rate structure (interest paid on balances of $1,000 and above)
-	Simple interest earned daily, paid monthly
-	Interest rate subject to change
-	Monthly imaged statement
-	FDIC insured

Distributions:
-	Account holder can only take a distribution up to the amount in the account at the time the expense is incurred
-	Expenses can be resubmitted when additional money is in the account
-	Fee for overdraft is $25 per item, not cleared in five days, $5.00 per day
-	Unused balances may be carried over from year to year during the participant’s lifetime
-	Are tax-free if taken for a qualified medical expense
-	For non-qualified medical expenses, prior to age 65 are generally subject to federal income tax and a 10% tax penalty
-	For non-qualified medical expenses, after age 65 are taxed as ordinary income