Health Savings Account (HSA)

Health Savings Account (HSA)

Bruning State Bank offers a tax-advantaged medical savings account. As health care cost continue to rise, this is tool to help you develop an effective financial plan to pay for qualified healthcare expenses now and in the future.

  • Free Visa debit/check card.
  • Free Online Banking.
  • Minimum deposit to open is $1.
  • No monthly maintenance fees as long as you maintain a monthly average balance of at least $1,500 in your HSA.  If monthly average balance falls below $1,500, then a $2 maintenance fee will be incurred that month.
  • Interest* is compounded and credited to this account monthly.  If you close this account before interest is paid, you will not receive the accrued interest.
  • Interest is calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.

Benefits of Opening a Health Savings Account:

  • Encourages you to save money for medical expenses and emergencies.
  • Offers Tax Benefits:
    • Contributions are tax-deductible.
    • Earnings grow tax-deferred.
    • Distributions for qualifying medical expenses are tax free.
  • Provides a way for employers to contribute to their employee's health savings.
  • Allows money to accumulate since unused HSA balances can be carried over from year to year.
  • Lets you roll over funds directly from a medical savings account.
  • Functions like a checking account:
    • Make unlimited transactions using checks or a FREE debit card.
    • Earn interest* on your HSA balance.
    • Monitor your HSA with Online Banking.

HSA Frequently Asked Questions

Who is eligible for an HSA?

Who is eligible for an HSA?
Who is eligible for an HSA?

Customers who are:

  • covered by a high-deductible health insurance plan.
  • not yet enrolled in Medicare.
  • not eligible to be claimed as a dependent on another person's tax return.

What are the insurance deductible requirements?

What are the insurance deductible requirements?
What are the insurance deductible requirements?

For 2017, the deductible must be at least:

  • $1,300 for an Individual
  • $2,600 for a Family

For 2018, the deductible must be at least:

  • $1,350 for an Individual
  • $2,700 for a Family

How much can I contribute per year?

How much can I contribute per year?
How much can I contribute per year?

The maximum contribution amounts are:

  • $3,400 (Individual) / $6,750 (Family) for 2017
  • $3,450 (Individual) / $6,900 (Family) for 2018

Exception:  If you are over the age of 55 but under the age of 65, there are "catch up provisions" - you may contribute an additional $1,000 per year for 2016 and 2017.

What is the contribution deadline?

What is the contribution deadline?
What is the contribution deadline?

The date on which you file your taxes, usually April 15 of each year.

What expenses qualify for tax-free distributions from my HSA?

What expenses qualify for tax-free distributions from my HSA?
What expenses qualify for tax-free distributions from my HSA?

See IRS Publication 502 "Medical and Dental Expenses" for a complete list.

We have also created this guide on HSA Qualified Expenses to help you, but please consult your tax advisor whenever you are uncertain.

*Please see our Rate Sheet for current interest rates.