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Expanding Further On Health Savings Accounts Member FDIC. Choice Benefits is a division of CFG.
Expanding Further On
Health Savings Accounts
Member FDIC. Choice Benefits is a division of CFG.
Health Savings Accounts
What Are They?
A Health Savings Account (HSA) is an IRS-approved, triple-tax-favored account used in conjunction with a qualified High-Deductible Health Plan (HDHP).
An individual is eligible to open an HSA if they are:
Health Savings Accounts
Account Eligibility
Covered by a Qualified High
Deductible Health Plan
Not covered under any
other health plan other
than a HDHP.
Not enrolled in Medicare
Not claimed as a dependent on
another person’s income tax return
Tax advantages of an HSA include: • Contributions are tax-deductible - Triple Tax Savings! • Accounts grow tax-deferred • Withdrawals are tax-free when used to pay for eligible
medical, dental, and vision out of pocket expenses•
Health Savings Accounts
Account Advantages
• Unused funds rollover every year for life.• The owner decides when and how their money is used for
eligible medical, dental, and vision expenses.• Can be used for your entire family. • Even when changing jobs or retiring, the HSA funds remain
available for use. • Converts to a Traditional IRA at age 65.• If used for non-eligible expenses prior to age 65, a 20%
penalty is incurred plus loss of tax savings.
•
Health Savings Accounts
Account Advantages
Health Savings Accounts
How Do HSA’s Work?
Individual $3,550/year maximum
Family $7,100/year maximum
Eligible Medical Expenses
Medical, Dental, & Vision
Non-Medical Expenses
20% Penalty + TaxesLoose 50%
Age 65+Turns into Tradtional IRA
Penalty Free
Tax Free Withdrawals!
Tax Free Contributions!
Triple Tax Savings
(Federal, State & FICA)
Rolls over for Life
Contributions may come from: • Your Employer • Your Employee • Your Spouse • Other sources
The IRS sets annual contribution limits and adjusts them periodically.
Health Savings Accounts
Contributions
Health Savings Accounts
2020 LimitsHigh Deductible Health Plan Minimum Deductible • Single: $1,400 • Family: $2,800
Health Savings Account Maximum Contribution • Single: $3,550 • Family: $7,100 • Catch-Up (Age 55+): $1,000
Health Savings Accounts
Distributions• HSA dollars can be used for eligible out of pocket
medical, dental and vision expenses. • Withdrawals for eligible out of pocket expenses are
always tax-free.• For an in depth list of eligible and ineligible medical
expenses, refer to IRS Publication 502 for more information.
•
Payment Options • Debit Card • Bill Pay
(with Online Banking) • Self-Reimbursement • Checks (price varies)
Online Banking • Check balance and
transactions • View Check Images • View eStatements • Pay bills with Bill Pay
Mobile App • Check balance and
transactions • Pay bills with Bill Pay • Debit Card Controls • Find ATMs
Fees may be assessed by your Mobile Service Provider.
Health Savings Accounts
Choice Bank HSA Features
Health Savings Accounts
Choice Bank HSA Features
Interest Rate • Competitive
interest rate earned on every dollar.
Investments • Balances over
$3,000 have the opportunity to grow their HSA through expanded investment options.
Fees • $2.50/month=daily
minimum balances $0-$2,999
• No fee=daily minimum balances $3,000+
Interest is compounded and credited monthly. Interest begins to accrue no later than the business day we receive credit for the deposit on non-cash items (for example: checks). Rates subject to change at any time.
Investment Products are: NOT A DEPOSIT * NOT FDIC INSURED * NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY * NOT GUARANTEED BY THE BANK * MAY GO DOWN IN VALUE.
A monthly service charge of $2.50 will apply, waived on daily minimum balances over $3,000.
Health Savings Accounts
Three Ways to Apply
Fill out the paper Choice
HSA Application
Apply Online at bankwithchoice.com/
personal-hsa/
Visit Your Local
Choice Bank
1 2 3
Questions?
HSA Help Team (866) 702-9033
[email protected] Monday-Friday 8:00am-6:00pm CT
Benefits Team (701) 356-9895
[email protected] Monday-Friday 8:00am-6:00pm CT
