A Health Savings Account, or HSA, can help you pay for qualified medical expenses and combat increases in health insurance costs. There are tax advantages, and contributions may be made by you, your employer, or anyone else, up to your maximum contribution limit.
You may want to consider an HSA if:
- You’re self-insured or self-employed and want a cost-effective health insurance solution that also helps you build financial security
- You’re a business owner and want to offer this alternative to your employees while lowering your overall health insurance costs.
- You currently participate in, or are thinking of participating in, a high deductible health plan (HDHP).
- You want to save additional tax-free money for retirement.
- You could benefit from tax-deductible contributions.
Which HSA is right for you?
||Mutual Fund HSA
||How to Apply
|Open the Kit
|Submit Your Application
Print, fill out, and mail to:
Union Bank & Trust
Attn: HSA, PLW-3
PO Box 82535
Lincoln, NE 68501
|Type of Account
||Deposit Savings Account with
tiered interest rates based on balance
|Balances can be invested in your choice of these mutual fund families:
JP Morgan, Goldman Sachs, PIMCO, American Funds, Wilshire,Columbia,
Oppenheimer, T. Rowe Price, Thornburg, Royce Pennsylvania, and MFS.
Investment Products: Not FDIC Insured – No Bank Guarantee – May Lose Value
||People who plan to utilize the funds
in the account frequently
|People who want to use an HSA as part of their investment mix
|Balance & Activity
||Variable balance with high activity
||Growth-oriented balance with low level of activity
||Debit card, ATM, checks
|Online account management
||Yes. Free, including BillPay
|Visa Health Savings Debit Card
||Yes. Free with no activity fee
||Free and encouraged, not required.
||$2 per month
Benefits of Using an HSA
- Account Ownership
Funds are portable in the case of a change in employers.
Your high deductible health plan 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.
To open an HSA, you must meet the following criteria:
- Be currently enrolled in a qualifying High Deductible Health Plan (HDHP).
- Cannot be enrolled in Medicare.
- Cannot be claimed as a dependent on someone else’s tax return.
- Cannot be covered under your own or spouse’s employersponsored health care plan that is not a qualified HDHP
Catch-Up Contribution Limits
Investors who are at least 55 years old will be able to make "catch-up" contributions.
- HSA funds used for non-qualified medical expenses will beassessed a 20% tax penalty and will also be taxed as regular income.
- Funds withdrawn after age 65 (or if you become disabled) are exempt from the 20% tax penalty- however, the funds will still be subject to income taxes if the funds are used for non-qualified medical expenses.
Contact our HSA experts at firstname.lastname@example.org. We’ll be happy to help.
Assistant Vice President
6811 S. 27th St.
Lincoln, NE 68512
402.323.1482email DonnaCall Donna