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What Is A Health Savings Account (HSA)? A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment. You control this money, deciding how to spend it on your health care needs. Whatever you don t spend is yours to keep forever. FYI Is A Health Savings Account Right For You? 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 or are thinking of participating in a high deductible health plan (HDHP). and You want to save additional tax-free money for retirement. You could benefit from tax-deductible contributions. You can deduct your Health Savings Account contributions on your tax return. What Is A High Deductible Health Plan (HDHP)? An HSA-qualified high deductible health plan* must have: A minimum deductible** of $1,050 for self-only coverage and $2,100 for family coverage. A maximum out-of-pocket limit** (including deductibles and co-pays) of $5,250 for self-only coverage and $10,500 for family coverage). *Other criteria apply. Always check with your insurance provider to be certain that the high deductible health plan you are considering is HSA-qualified. **These amounts are for 2006. They are indexed annually for inflation. Who Can Have An HSA? You can open and contribute to an HSA if you: Are age 18 or older. Are covered by an HSA-qualified high deductible health plan. Do not currently receive Social Security benefits. Cannot be claimed as a dependent on someone else s tax return. Are not covered by a non-hdhp health plan that provides any benefit that is also covered by your HDHP. Coverage Advisor Estimate health care costs for you or your family, see the tax benefits of putting money into an HSA account, and determine what HSA contribution is right for you at usbank.com/hsa. Coverage Advisor is a registered trademark of Subimo, LLC.
What Are The Benefits Of An HSA? Cost Savings. Reduce your insurance premiums by choosing a low-premium HDHP. Instead of giving your hard-earned money to a health insurer, pay yourself instead. Put the premium difference into your HSA and begin building financial security. Tax Savings. You save on taxes in three ways: 1. You can deduct your contributions on your tax return. 2. You earn tax-free interest. 3. Your withdrawals are tax-free when used for qualified medical expenses. Control. You make all the decisions about: How much money to put into the account Whether to save the account for future expenses or pay current medical expenses Which medical expenses to pay from the account Which company will hold the account Flexibility. You can use the funds in your account to pay for current medical expenses, including expenses that your insurance may not cover, or save the money in your account for future needs, such as: Health insurance or medical expenses if unemployed Medical expenses after retirement (before Medicare) Out-of-pocket expenses when covered by Medicare Long-term care expenses Ownership. You own the money in the account. It s yours. It becomes a financial asset, an asset you can use for retirement or even pass on to loved ones. Long-Term Savings. Funds left to accumulate in an HSA, including interest, grow tax-free. Withdrawals for eligible medical expenses are never taxed. The Money Stays With You. If you switch jobs, change medical coverage, move to another state, become unemployed or retire, your account stays with you. Federal Income Tax Savings. The examples below demonstrate the potential money you can save in federal income taxes by owning and contributing to an HSA. Single Income $40,000 $80,000 $120,000 HSA Contribution Tax Savings $1,500 $225 $375 $420 $2,700* $405 $675 $756 Married Couple With 2 Dependent Children Joint Income $40,000 $80,000 $120,000 HSA Contribution Tax Savings $3,000 $370 $450 $930 $5,450* $615 $817 $1,667 *Maximum contribution generally allowable. Source: Tax Savings from HSA Contributions Made in 2006, United States Department of Treasury, www.treas.gov.
Why Choose U.S. Bank? There s no better place to have your HSA than with U.S. Bank. We re separate from your employer and insurance company, so you can change jobs or insurance plans without changing your HSA. This gives you greater flexibility for your future and keeps things simple for you. In addition, our HSA has all the features, convenience and control you expect from U.S. Bank. It s easy to open and easy to use. Easy To Open. Apply any time of the day or night by calling U.S. Bank 24-Hour Banking or enroll online at usbank.com/hsa. Or visit your local U.S. Bank branch during normal business hours. Easy To Pay Medical Expenses. Pay qualified medical expenses by check or U.S. Bank HSA Check Card. Easy To Use. Manage your account from the comfort of your home, any time of the day or night. U.S. Bank Internet Banking. U.S. Bank Internet Banking is the easiest way to manage your account: Access your account 24/7. Check your balance. View account statements, account history and check images. Manage your account needs, such as ordering checks, downloading account forms and updating your personal account information. FYI Opening an account with U.S. Bank allows you to change your health plan, or your job, without having to change your HSA. Easy To Fund. You can fund your HSA when you open it or wait until it s convenient for you. There s no minimum deposit. You have several convenient deposit options: Set up a recurring AutoTransfer in any amount or frequency. Direct deposit a portion of your paycheck into your account. Make a deposit at an ATM. We have more than 4,800 bilingual ATMs in 24 states. Visit your local U.S. Bank branch. We have nearly 2,400 locations. Make a one-time transfer via phone or U.S. Bank Internet Banking. Do You Have Other U.S. Bank Accounts? See all your accounts together, including your HSA, with U.S. Bank Internet Banking: Use your Personal ID/Password to access all your accounts. Easily transfer money to and from your Health Savings Account from another account. 24-Hour Banking And Financial Sales. Call our 24-Hour Customer Service line toll-free with questions, to obtain account assistance or open additional U.S. Bank accounts.
FYI Account Statements. Receive account statements by regular mail or email. And you can always access your account statements and download account history through U.S. Bank Internet Banking. Tax Information. You will receive year-end tax information for completing your taxes and determining your tax deduction. You ll want to keep all your receipts for tax purposes. Competitive Rates. Our HSA is FDIC-insured and pays competitive rates of interest. And with the account s tiered interest rates, the more you deposit the more interest you ll earn. These interest earnings are tax free when used to pay for qualified medical expenses. How Much Can You Contribute? You can contribute up to 100% of your HDHP deductible, as long as it does not exceed $2,700* for self-only coverage or $5,450* for family coverage. *These amounts are adjusted annually for inflation. Contribution Example. Let s say your deductible on your health plan is $1,050 for self-only coverage. You could contribute a maximum of $1,050 to your HSA in 2006. If your deductible is $6,000 for family coverage, you could contribute a maximum of $5,450 in 2006. If you re age 55 or older, you can also make an additional annual catch-up contribution up to these amounts: 2006 $700 2007 $800 2008 $900 2009 and after $1,000 What Can I Use My HSA Money For? Generally, you can use tax-free dollars on most medical expenses, such as: Medical care and services Dental and vision care Prescriptions Over-the-counter medications Chiropractic visits Acupuncture You can use the money in your account to pay for medical expenses for yourself, your spouse or your dependent children, even if they are not covered by your high deductible health plan. Money in your HSA can be used to pay for long-term care insurance premiums. FYI
Get Started Today. If you want greater control over your money, your health and your future, consider a U.S. Bank Health Savings Account. Apply for your Health Savings Account any time of the day or night by phone (1-800-US BANKS) or online at usbank.com/hsa. Or visit your local U.S. Bank branch. We ll let you know immediately if you qualify, so you can begin enjoying the benefits of an HSA from U.S. Bank. Frequently Asked Questions. What Happens If I Spend My HSA Money On Other Things? Any HSA funds used for anything other than qualified medical expenses are taxable as income and subject to an additional 10% tax penalty. After you turn age 65, or if you become disabled, the 10% additional tax penalty no longer applies. How Can I Find A High Deductible Health Plan? Any company that sells health insurance coverage in your state may offer a high deductible health plan policy. Contact your employer s human resources department, your current insurance company, a licensed insurance agent or your state insurance department. Where Can I Go For More Information? To learn more about U.S. Bank Health Savings Account, visit our website at usbank.com/hsa. To learn about Health Savings Accounts in general, visit the U.S. Department of Treasury s website at www.treas.gov and click on Health Savings Account.