Personal Health Savings Accounts (HSA)

Have you taken advantage a new Personal Health Savings Account yet? Here is some information to help you care for your family’s needs while you get the most benefit out of our new Health Savings Accounts that we are offering at Metropolitan National Bank.

What is an HSA?

A Health Savings Account (HSA) is a tax exempt way to set aside funds in an interest bearing account to help pay for qualified medical expenses for you and your dependents.

HSA Qualified medical expenses as defined under the federal tax law are eligible expenses. This includes most medical care and services, dental and vision care, weight loss programs, some over the counter medications, mileage and much more!

Contributions can be made by you, your employer, or both, to pay for current and future medical expenses. Best of all, any contributions made into a HSA will automatically roll over so no one has to estimate their family’s annual medical expenses in advance!

Am I eligible for an HSA?

Most adults under 65 who are not enrolled in Medicare and are covered under a high-deductable health plan (HDHP) can qualify for an HSA, but it is up to the account holders to determine their own eligibility.

Contribution eligibility guidelines include:

• Must be covered by a high deductible health plan (HDHP)
• Must not be covered by other health insurance
• Must be under age 65
• Must not be enrolled in Medicare
• Cannot be claimed as a dependent on someone else's tax return

Children cannot establish their own HSA. Spouses can establish their own HSA, if eligible.

*Eligibility requirements are based on IRS guidelines. If you are not sure if you qualify, check with your health plan administrator or a tax professional.

What type of medical expenses can I use my HSA for?

Qualified medical expenses as defined under the federal tax law are eligible expenses. This includes most medical care and services, dental and vision care, and some over-the-counter drugs. You can use the money in the account to pay for qualified medical expenses not only for yourself, but your spouse or your dependent children as well, even if they are not covered by your HDHP.

You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 10% penalty tax.

If the account holder dies, becomes disabled or attains age 65, there is no 10% penalty tax, but the amount is still subject to federal income tax.

You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 10% penalty tax. If the account holder dies, becomes disabled or attains age 65, there is no 10% penalty tax, but the amount is still subject to federal income tax.

How can I open an HSA?

Metropolitan National Bank customers can open an HSA with a $100 minimum and need a minimum balance of $100 to earn interest. Interest is compounded daily on the collected balance and credited at the end of each statement cycle. Our HSAs are individual accounts that function like an IRA, but you can access your funds as easily as a checking account with all of the features and benefits you have come to expect from Metropolitan National Bank. Funds can be accessed with checks, by transfer, ACH direct deposit, online bill payment or Visa debit card.

You can make regular contributions at the teller window, ACH direct deposit, scheduled transfer or voice response transfer.

Stop by any Metropolitan National Banking Center and ask for more information .