A Health Savings Account (HSA) is a tax-favored trust or custodial account established exclusively for the purpose of paying qualified medical expenses of you, your spouse and your dependents.
|Benefits of our HSA Checking Account
$3 per month or
$1.50 if customer has an open LCNB Checking Account
|You are eligible to open a HSA Checking account if you:||
*With certain exceptions for plans providing preventive care and limited types of permitted insurance and permitted coverage
|Notes & Disclosures
||View Notes and Disclosures Here|
A health plan qualifies as a High Deductible Health Plan if the annual minimum deductible is at least $1,350 for single coverage or $2,700 for family coverage and the maximum out-of-pocket limit is $6,650 for single coverage and $13,300 for family coverage for 2018.
For 2019, the minimum deductible is $1,350 and the maximum out-of-pocket limit is $6,750 for single coverage. For family coverage the minimum deductible is $2,700 and the maximum out-of-pocket limit is $13,500. These figures are subject to be adjusted by the IRS for inflation each year.
For tax year 2018, contributions are limited to $3,450 for single coverage and $6,850 for family coverage. For tax year 2019, the contribution limit for single coverage is $3,500 and $7,000 for family coverage. A catch-up contribution of $1,000 is available to persons age 55 and older. The contribution limits are adjusted for inflation each year. Contributions may be made for the prior tax year until April 15.
You can make no further contributions after age 65; however, the account may remain open to pay for qualified medical expenses.
Effective January 1, 2011, it will no longer be permissible to use the HSA to pay for over the counter medications and other non-prescription drugs without a prescription. Medical expenses qualified or non-qualified are explained in IRS Pub. 502. You can find this publication online at https://www.irs.gov/pub/irs-pdf/p969.pdf .
HSA distributions used for non-qualified medical expenses are subject to ordinary income tax and, if taken before age 65 is 20% IRS penalty tax. (Unless the distribution is because of death or disability).