Overview – Frequently Asked Questions

Overview

You want to do what is right for your employees and your company. If consumer-driven health care is the solution for your company, you should partner with the best. Home Building is your first choice for your HSA. We will collaborate with you and your insurance professional to provide a custom roll out plan that supports you and your human resources administrator.

Features

• No annual fee
• Minimum $50.00 deposit to open the account (waived for group enrollment)
• Unlimited VISA® debit card access
• Unlimited check writing
• Free VISA® debit cards for account owner and authorized signer
• Free online access
• eStatements provided monthly
• $15 per account set-up charge (may be paid by employer or employee)
• Minimum balance fee of $2.00 per month if the balance is below $2,500.
• No minimum balance required to earn regular rate
• Tiered interest rates
  • $2,500
  • $10,000

Contact a Relationship Banker for more information.

Frequently Asked Questions

What is a Health Savings Account?

A Health Savings Account allows individuals to pay for current health care expenses and save for future qualified medical and retiree health care expenses on a tax free basis.

Who is eligible for a Health Savings Account?

To be eligible for a Health Savings Account, an individual must be covered by a High Deductible Health Plan (HDHP), must not be covered by any other health insurance, is not eligible for Medicare, and can’t be claimed as a dependent on another individual’s tax return.

What is a “High Deductible Health Plan” (HDHP)?

A HDHP is a health insurance plan with a minimum deductible of $1,200 (self-only coverage) or $2,400 (family coverage). The annual out-of-pocket expenses (including deductibles and co-pays) cannot exceed $5,950 (self-only coverage) or $11,900 (family coverage). These are the 2010 figures. HDHPs can have first dollar coverage (no deductible) for preventative care and higher out-of-pocket (copays & coinsurance) for non-network services.

How much can I contribute to a Health Savings Account?

The maximum amount for self-only coverage is $3,050 and $6,150 for family coverage. If you are 55 years of age or older you may contribute $1,000 as a catch-up contribution. These amounts are for 2010 and change annually for inflation.

How do you contribute to a Health Savings Account?

Contributions to an HSA can be made by you, your employer or any other person for your benefit. The combined contributions each year cannot exceed the maximum set by the IRS. Contributions can be made through payroll deduction, transfer from another Home Building account, by mail, or in person.

Do HSA funds have to be used each year?

No. There are no “use it or lose it” rules associated with HSAs. Balances in your HSA rollover from year-to-year.

Who owns the Health Savings Account?

The HSA and all contributions are owned by the individual. It is yours even if you change jobs, change medical coverage, leave the work force, move to another state, or change your marital status.

What is a qualified medical expense?

Qualified medical expenses are those expenses that would generally qualify for the medical and dental expense deduction. Examples include amounts paid for doctors’ fees, prescription and non-prescription medicines, and necessary hospital services not paid for by insurance. For more detailed information, please refer to IRS Publication 502 titled, “Medical and Dental Expenses. “ If you still have questions please consult your tax adviser.

Who can benefit from my Health Savings Account?

You can use the money in your HSA to pay for qualified medical expenses of yourself, your spouse, or your dependent children even if your spouse or dependent children are not covered by your HDHP.

How do you access the money in your Health Savings Account?

You are able to access your HSA by using checks or your Home Building Visa debit card. You can even stop by one of our convenient locations.

What happens if I use the money in my HSA for expenses that are not qualified medical expenses?

If you use the money for any other reason, you will need to include that amount in your gross income when you file your taxes. It will be treated as regular income and will be subject to a 10% tax penalty (unless you are disabled or age 65 or over). It is your responsibility to keep supporting records to show the IRS that funds were used to pay for qualified medical expenses. Remember, your HSA money is tax-free as long as it is used to pay for qualified medical expenses.