Union Bank & Trust Business Banking: Health Savings Accounts (HSA)

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HSAs help combat increases in health insurance costs for those willing to take personal control of their medical expenses.

Highlights on the unique benefits of an HSA:

Employer Benefits

Reduced Premiums
Many businesses can substantially reduce their insurance premiums by switching to an HSA qualified HDHP.

Lower Fixed Costs
Allows control of two plan components, premium and account funding, to be decided independently and reviewed annually.

More benefit dollars to employees
Ability to deliver insurance dollars directly to employees by funding the account rather than paying 100% to the insurance carrier.

Incentives for Employees
The reallocation of premium dollars to the HSA will create an incentive for employees to take control of their health care expenses.

Tax Savings
Contributions to employee HSA accounts are tax deductible for the employer.

Employee Benefits

Account Ownership
Funds are portable in the case of a change in employers.

Security
Your high deductible insurance and HSA protect you against high or unexpected medical bills.

Flexibility in Funding
Contributions may be made by the employer, the employee, or any other person or nonperson (charity, etc.) up to your maximum contribution limit.

Tax-Free Savings
Unused funds can roll over into the next plan year or be saved for retirement.

Contribution allowance
Contributions can be made for the prior tax year until April 15th of the following year. Your contribution limit is determined by your qualifying HDHP.

Tax Deductible Contributions
Contributions to your HSA (that are not from your employer) are tax deductible.

Tax-Free Earnings
Interest earned on the account will accrue tax-free within the HSA.

Tax-Free Withdrawals
Funds used for qualified medical expenses will not be taxed upon withdrawal.

Catch up Contributions
If you are age 55 or older you can also make additional catch up contributions.

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Important Information About Procedures For Opening A New Account—
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you; we may also ask to see your driver’s license or other identifying documents.

FDIC Insurance:
For general information on FDIC Insurance, click here. For an important disclosure regarding deposit insurance on noninterest-bearing transaction accounts, click here.

**Insurance policies are obligations of the issuing insurance company, and are not obligations or deposits of, or guaranteed by any bank and are not FDIC insured. Annuities subject to investment risks, including possible loss of the principal amount invested. Union Bank makes insurance available through its affiliated company Union Agency Inc.