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- Money
Management > Health Savings Accounts
Health Savings Accounts (HSA)
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Health Savings Account (HSA) is a new health plan that helps
you save for out-of-pocket healthcare expenses and is
easy to use. Plus, your contributions are tax deductible.
If you are currently participating in a qualified, high
deductible insurance plan, here's how you can benefit:
· No income
limits
· Tax deductible contributions
· Tax FREE withdrawals for qualified medical expenses
· Maximum contribution of $2,850 for individuals and
$5,650
for families
· Balances carry over to the next calendar year
· Visit ANY Bank Mutual office to sign up |
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Questions and Answers
Bank Mutual is
pleased to offer HSAs and to provide
answers to your questions. For personal assistance and to enroll
in an HSA, please visit any of Bank Mutual's 78
convenient locations or call us at
1-800-261-6888 for the
office nearest you.
1. Eligibility
to establish a Health Savings Account
2. Contributions
3. Using my Health Savings Account
4. How can I set up a Health Savings
Account at Bank
Mutual and what type of account is my Health Savings Account?
HSA Basics
A Health Savings
Account (HSA) is a special tax-sheltered savings account to pay
for medical expenses when used in conjunction with a qualified
High Deductible Health Plan (HDHP). This means instead of buying
high premium insurance with low co-pays, an individual or
employer can buy a lower premium policy with higher deductibles
and pay uncovered medical expenses from the funds in the HSA.
Contributions can
be deposited by an eligible individual and/or by an employer or
another individual on behalf of an eligible individual, and are
tax-deductible to either the HSA owner or employer making the
contribution. Money not used for medical bills can be kept in
the HSA growing on a tax favored basis to cover future medical
bills.
For 2007, the
maximum contribution may not exceed $2,850 for eligible
individuals with self-only coverage or $5,650 for eligible
individuals with family coverage. These contributions may be
limited for an individual who has an HDHP with a deductible
lower than the maximum annual contribution amount.
In addition to
these contribution amounts, eligible individuals age 55
and older may make HSA catch-up contributions up to $800 in 2007.
Amounts deposited grow tax free until distributed. The HSA owner
will not owe tax on any withdrawal from the account as long as
it is used to pay medical expenses incurred by the HSA owner,
spouse or dependant. Amounts withdrawn from the HSA that
are not used to pay the family's medical expenses are subject to
income tax and possibly an additional 10% penalty from the IRS.
Check with your tax advisor to determine your specific
situation.
All accounts are FDIC
insured.
Bank Mutual Deposit Account Rules |
