Health Savings Accounts
Reducing the cost of health care. People
are the driving force of your small business and offering
a comprehensive health insurance plan is one of the keys
to attracting and retaining the best employees. With the
soaring cost of health care, coverage is prohibitive for
many small businesses - many of which offer no health care
benefits.
At Cabarrus Bank & Trust, we want to
give you every opportunity to grow
and thrive. A Health Savings Account (HSA) can help
you do just that.
What is an HSA and how does it work?
An HSA is a savings account that enables your employees to save money, tax-free, specifically to cover medical expenses. Your 2010 employee health plan must have a minimum deductible of $1,200 for individuals or $2,400 for families for them to be eligible for an HSA. Accounts are held locally and funds can be withdrawn via a check or debit card. Any unused dollars roll over to the next year.
HSA accounts are paired with a high-deductible health plan so businesses that make the switch can save a significant amount on premiums due to the higher deductible. You can then use the savings to help fund the HSA accounts of your employees which in turn offer a tax free option to help pay down out-of-pocket health expenses. Upon retirement your employees may re-claim any remaining HSA funds in their account, as taxable income.
Annual contributions are limited to the health plan deductible, up to a maximum of $3,050 per individual and $6,150 per family. Individuals aged 55 or greater and who are new to HSA's have the option to make a $1,000 catch-up contribution. HSA eligibility is restricted to those below the Medicare age of 65.
Type of Coverage |
Rule |
2009 |
2010 |
Individual Coverage |
Max Contribution |
$3,000 |
$3,050 |
|
Min Contribution |
$1,150 |
$1,200 |
Family Coverage |
Max Contribution |
$5,950 |
$6,150 |
|
Min Contribution |
$2,300 |
$2,400 |
Competitive market rates of interest tiered to pay premium interest rates on a higher account balance.
Benefits:
- Unlimited NO FEE In-Network ATM Transactions *
- 2 Free Non-Network ATM Transactions / Statement Cycle *
- Other bank surcharges may apply.
- Competitive market rates of interest
- Tiered to pay premium interest rates on a higher account balance.
- Save a significant amount on health insurance premiums
- Increase company-paid coverage
- Lower taxable income
- Build reserves for future medical expenses or retirement
- Easy access to funds for qualified expenses
- Attract and retain high-quality employees
- Deposits held locally
- Empower your employees to take control of their healthcare spending
- Detailed
Statement with Imaged Checks
- Combined
Accounts Statement
- Complimentary Telephone Banking
- Complimentary Online Banking
- Complimentary Online Statements
- FDIC Insured
- Monthly Maintenance Fee: $2.25
- No Charge if the minimum daily balance of $3,000 is maintained.
Disclosures:
* Federal regulations require that all banks monitor activity on accounts classified as Savings Accounts. With regards to this regulation, no more than 6 (six) pre-authorized debits are allowed per statement cycle. Pre-authorized debits would include ACH debits, internet transfers, transfers to cover overdrafts, etc. Regulations allow unlimited in-person or ATM withdrawals but bank fees may apply. Please feel free to contact us should you have any questions.
We are committed to delivering quality products and services and adhering to a high standard of customer care. Our Account Executives would be happy to assist you and discuss your savings options.
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