Jackson County Bank - Health Savings Accounts

Home Personal BankingHealth Savings Accounts

Health Savings Accounts (HSAs) are proving to be a viable alternative in today’s high cost healthcare environment. HSAs are tax-exempt accounts wherein the owner may accumulate funds throughout the year to pay for qualified medical expenses. You may contribute all, or a portion of, your health plan deductible annually into an HSA tax free.

	To be eligible for an HSA, the following requirements must be met:
		You must have health coverage under a qualified high-deductible health plan (HDHP)
		You cannot be covered by another health plan unless that plan is an HDHP, or one that provides specific coverage such as dental or vision
		You cannot be enrolled in Medicare, and;
		You cannot be claimed as a dependent on another person’s tax return.

Contributions to your HSA may be made by you, your employer, or any other individual. Contribution limits do apply and are defined as the amount of your annual deductible, or the maximum contribution allowed per Internal Revenue Service (IRS) guidelines, whichever is lower. If you are not enrolled in a HDHP at the beginning of the calendar year, only a pro rata portion of the maximum can be contributed. You can find the current year maximum limits by visiting www.irs.gov (Pub. 969) or by contacting JCB.

HSA contributions are tax deductible and JCB’s HSA deposits earn interest in a tiered structure allowing you to earn more as your balance grows within your FDIC insured account. Like an Individual Retirement Account (IRA), earnings are tax deferred. Distributions are tax free provided funds are used to pay for qualified medical expenses and unused funds carry over from year to year. Qualified medical expenses are listed under IRS Code 213(d) and are updated periodically. Please visit the IRS website www.irs.gov (Pub. 969) or by contacting JCB for the most current information.

At age 65, the money may become a supplement to your retirement. Funds can be withdrawn for medical expenses not covered by Medicare, tax free. Money used for non-medical expenses are subject to income tax.

Once the account has been opened and you have made your initial contribution, funds can be accessed by a variety of options such as ATM, debit card, check, ACH and teller services. You may also opt to enroll for JCB’s NetBanc online banking and/or utilize JCB’s Smart Line telephone banking to authorize an electronic funds transfer (EFT) and obtain account information.

Please contact us if you would like more information regarding HSAs.