Feel good about your next visit to the doctor once you a open a Health Savings Account — the easy tax-free* way to save for qualified medical expenses. An HSA works alongside a high deductible health plan to help you cover future health care costs.
Even access your health savings as necessary with a free** HSA debit card so you can pay as painlessly as possible.
Annual contribution limits are set by the IRS.
*When used for qualified medical expenses. Consult a tax advisor.
**See account disclosure for full details.
†Set up as a checking account.
*Note: While we can provide information to you about how HSAs work and other account details, Prime Meridian Bank does not provide advice or counsel on whether a Health Savings Account is right for you. Please refer to your tax advisor or financial planner on whether this financial product is right for you.
What is a Health Savings Account (HSA)?
A HSA is an IRA-like account designed exclusively for covering medical expenses incurred by the HSA account beneficiary (the person who establishes the account) and his or her dependents.
Prime Meridian Bank's HSA Account Details
Who is Eligible?
Any individual who is:
What is a High Deductible Health Plan (HDHP)?
Annual Deductible & Maximum Out of Pocket Limits
|Annual Deductible:||Maximum Out-of-pocket:|
Individual (Owner) Contributions
Your eligibility to contribute to an HSA for each month is generally determined by whether you have HDHP coverage on the first day of the month. Your maximum contribution for the year is the greater of:
(1) the full contribution
(2) the pro-rated amount
The full contribution is the maximum annual contribution for the type of coverage you have on December 1st.
The pro-rated amount is the maximum annual contribution for the type of HDHP coverage you have, times the number of months that you have the coverage, divided by 12. If your contribution is greater than the pro-rated amount, and you fail to remain covered by an HDHP for the entire following year, the extra contribution above the pro-rated amount is included in income and subject to an additional 10% tax. Contribution limits may also be affected by other retirement plan contributions. ( MAX CONT X # OF MONTHS COVERED/12 )
Annual Contribution Limits
|Max Contribution||Catch-Up Amount*|
* If the owner is 55 or older by the end of the calendar year, then he/she may make an additional "catch-up" contribution.
It is the account holder's responsibility to ensure that they do not make contributions in excess of their allowable amount. We only ensure you do not contribute over the Maximum Standard Limit.
For HSA assets to retain their tax-free status, they may only be withdrawn and used for the following expenses:
Non-qualified uses of HSA assets are subject to taxation and a 10% penalty unless the HSA account beneficiary is 65 or older, dies, or is disabled.
*Please refer to IRS publication 969 for listing of Qualified Medical Expenses
What are Prime Meridian Bank's Responsibilities?