Business First - Deposit ProductsFirst Health Savings Account
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A First Health Savings Account is a tax-advantaged account that can be established by eligible individuals covered under a high-deductible health plan to save and pay for qualified medical expenses. Examples of qualified expenses include co-pays, hospital visits, prescriptions and certain non-prescription drugs, and some insurance premiums such as Long Term Care insurance.
Contributions made on your behalf are fully tax-deductible, earnings are tax-deferred and distributions used to pay for qualified medical expenses are tax-free, regardless of your income.†
A key benefit of a First Health Savings Account is that the contributions you make belong to you with no spending deadline. All unused contributions stay in your account, earning tax-deferred interest.
Features of First Health Savings:
- No minimum deposit to open an account.*
- No minimum daily balance.
- Monthly maintenance fee of $3.00.
- Free first order of bank logo checks.
What is a HSA?
A HSA is money put in a special account owned by an individual to pay current and future medical expenses.
Who is eligible for a HSA?
An eligible individual is someone who is:
- Covered by a High Deductible Health Plan (HDHP).
- Generally not covered by any health plan that is not a HDHP.
- Not enrolled in Medicare.
- Not eligible to be claimed as a dependent on another person's income tax return.
Definition of High Deductible Health Plans
A health plan is a HDHP if the plan satisfies both an annual deductible and an out-of-pocket expense requirement.
HSA Contribution Limits:
Year | Self | Family | Catch-up (age 55+) |
2010 | $3,050 | $6,150 | $1,000 |
2011 | $3,050 | $6,150 | $1,000 |
Contributions may be made by:
- The individual.
- The employer.
- By others on behalf of the individual.
HSA Distributions
Qualified Medical Expenses are medical expenses that are:
- Incurred on behalf of the HSA owner, spouse or dependents.
- Incurred after an HSA has been established.
- Not covered by insurance.
- Paid by the HSA owner, spouse or dependent.
If a distribution is not used for Qualified Medical Expenses:
- The distribution amount will be included in income.
- A 20% penalty will be assessed; this penalty will be waived upon death, disability, or attaining age 65.
Please see the terms and disclosures for additional information about rates, fees and other costs.
† Consult your tax advisor regarding the tax advantages of a First Health Savings Account.
* A one-time set up fee of $15 is required at account opening.
