Health Savings Accounts (HSAs) are new, tax-favored consumer savings arrangements for individuals and families covered by high deductible insurance plans (IRC Sec. 223).
HSAs were created by the Medicare Prescription Drug and Modernizations Act of 2003 and became available January 1, 2004.
You can save money on current and future medical expenses. If you are eligible for an HSA, your contributions are tax deductible and your withdrawals for qualified expenses are tax-free.
Please note that a qualifying high deductible health plan does not have to be an employer sponsored arrangement. An individually issued insurance policy can also qualify if it otherwise meets the requirement.
Who is eligible to set up a Health Savings Account?
Individuals or employees who meet the following requirements on the first day of a month are eligible to set up and contribute to a Health Savings Account during that month.
- They must already be enrolled in or covered under a qualified high-deductible health plan on the first day of the month.
- They must not be able to be claimed as a dependent on anyone else's tax return
- They are currently not enrolled in Medicare
An Important Note About Eligibility
To be eligible for an HSA, you must first be enrolled in an HSA-qualified high deductible health plan (HDHP). The HSA/HDHP combination offers tax benefits with affordable health insurance. To qualify for 2008, the HDHP must have a minimum deductible of $1100/individual or $2200/family. Maximum out-of-pocket expenses cannot exceed $5,600/individual and $11,200/family for 2008.
How Much Can I Contribute to an HSA?
2008 HSA Contribution Limits |
|
Self-Only Coverage |
Family Coverage |
$2,900 |
$5,800 |
Catch-up Contribution Limits (age 55 or older) |
|
Taxable Year |
Maximum Catch-Up |
2007 |
$800.00 |
2008 |
$900.00 |
2009 and later |
$1,000.00 |
Where can individuals open a Health savings account?
Individuals can open a Health Savings Account with an IRS approved trustee/custodian, such as a bank.
Please note that banks that serve as custodians do not also offer the qualifying HDHP.
(That is typically provided by a Health insurance carrier or self insured by the employer.) Even though they work together; the qualifying HDHP and the HSA are separate arrangements.
How can I open a Southport Bank Health Savings Account?
To open a Southport Bank HSA, we recommend first contacting your employer (if applicable) or your insurance professional to review your eligibility and how an HSA can work for you. If you are eligible, call or visit your nearest Southport Bank branch.
Southport Bank Health Savings Account guidelines:
- Free HSA Interest Checking Account
- Monthly Statements
- Interest credited monthly
- Unlimited check writing
- HSA debit card available
- 24-hour account access via Internet available
- 24-hour account access via Telephone Banking available
- No account set-up or closing fees
- Overdraft Protection not available
Current Health Savings Account interest rates:
| Minimum to open | Minimum to Earn Interest | Tiers | Rate | APY | |
| Health Savings Accounts | $100.00 | $250.00 | Daily Balance $250-$2,499.99 $2,500.00- $9,999.99 and up |
1.98% 2.47% |
2.00% 2.50% |
Your interest rate and annual percentage yield may change at any time. Deposits you make into your account will be reported as current year contributions. Any withdrawals you make by check or debit card will be reported as an eligible distribution.
Please note if you would like to make a previous year contribution, you will need to visit a Southport Bank Branch.
