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PERSONAL BANKING > UCB HEALTH SAVINGS ACCOUNT |
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| What is a Health Savings Account (HSA)? | ||||||||
| A Health Savings Account (HSA) is a tax-free checking account created by the U.S. Government to help American families with health care costs. HSAs are available at United Community Bank. The UCB Health Savings Account allows an individual covered under a qualified high-deductible health plan to make tax-deductible contributions into an HSA and then use the funds tax-free to pay for out-of-pocket medical expenses. |
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| Benefits of an HSA |
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| • Contributions are tax deductible • Interest earned in an HSA grows tax-free • Money invested in an HSA carries over from year to year • If the individual changes jobs, the HSA goes with the individual • HSAs help make health care affordable |
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| Eligibility Qualifications for an HSA | ||||||||
| • Must be covered under a qualified high-deductible health plan • The annual deductible must be at least $1,100 for individual coverage, and at  least $2,200 for family coverage• Not covered under another type of health plan • Not entitled to Medicare benefits (must be under 65) • Not claimed as a dependent on another person’s tax return |
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| Contribution Requirements to an HSA | ||||||||
| • Can annually contribute $2,900 for individual coverage and $5,800 for familycoverage in 2008. These amounts will be increased for inflation in future years. • In addition, individuals over age 55 can make additional catch-up contributions each year until they enroll in Medicare. The amount of the additional catch-upamount is based on the following schedule:
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| Distributions from an HSA | ||||||||
| • Distributions are not taxable as long as they are used to pay for qualifiedmedical expenses such as:Prescription drugsOver-the-counter drugsDoctor’s office or hospital visitsVision careDental workLong-term care insurance premiums COBRA premiumsHealth insurance premiums during any period of unemployment • Distributions not used for qualified medical expenses are taxable and if under the age of 65 are subject to a 10% penaltyFor more information about an HSA and how it affects you, contact your tax advisor. |
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| UCB Health Savings Account | ||||||||
Unlimited Deposits: Up to maximum contribution limits Check Writing Privileges Compounding and Crediting Frequency: Quarterly Minimum Balance to Open Account: $50.00 ***No Set-Up Fees*** ***No Monthly Fees*** Variable Rate — Interest rates and annual percentage yields may change at any time. |
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