The HSA Advantage

The funds remain in the account form year to year, just like an IRA. There are no "use it or lose it" rules for HSAs.

The money in the account can be used to pay for "qualified medical expenses". This includes most medical care and services, dental and vision care and over-the-counter drugs.

You can use the money in the account to pay for medical expenses for yourself, your spouse or your dependent children. You can pay for those expenses even if they are not covered by your HDHP.

New legislation gives you more time to decide if a HSA is right for you. Deductible limits for the next year 

Am I Eligible for an HSA?

You are eligible for an HSA contribution if you:

• Are covered under a High Deductible Health Plan (HPHP)
• Are not covered by any other health plan that is not a high deductible plan (certain exceptions apply)
• Are not enrolled in Medicare
• Are not claimed as a dependent on another person's tax return

What is a High Deductible Health Plan (HDHP)?

An HDHP is a plan with a annual deductible that is equivalent to, or greater than, the amounts shown in the chart below.

HPHP ANNUAL DEDUCTIBLE
Tax Year	Self-Only Coverage	Family Coverage
2009	$1,150	$2,300
2010	$1,200	$2,400

Other HDHP Requirements

The HDHP limit for out-of-pocket expenses must be equivalent to, or less than, the amounts shown in the chart below.

MAXIMUM OUT-OF-POCKET EXPENSES
Tax Year	Self-Only Coverage	Family Coverage
2009	$5,800	$11,600
2010	$5,950	$11,900

What are an HSA Owner's Responsibilities?

If you are eligible, you can establish an HSA in much the same way you would establish an IRA - with a qualified trustee or custodian such as a Banker at Park State. Each year, you are responsible for determining your allowable annual HSA contribution and weather you have qualified medical expenses eligible for reimbursement with nontaxable HSA distributions.

A Park State Banker will be available to guide you through these responsibilities.

Who Can Contribute to My HSA?

Providing you meet eligibility requirements, you, your employer, family members and any other person may contribute to your HSA. This is true whether you are self-employed or unemployed.

How Much Can I Contribute to My HSA?

The maximum annual contribution amount can now be fully funded regardless of when you become eligible during the year. Additionally, your maximum contribution is not limited to your annual deductible. The amounts are listed in the chart below.

STANDARD CONTRIBUTION LIMITS
Tax Year	Self-Only	Family	Add'l Catch Up (55+)
2009	$3,000	$5,950	$1,000
2010	$3,050	6,150	$1,000

What are the Federal Tax Benefits of an HSA?

Contributions to an HSA are fully deductible, the earnings grow tax deferred, and distributions for qualified medical expenses are tax free. Please consult with your tax or legal professional for guidance.

Additional HSA Details

• Opening Deposit: $50.00
• Free Instant Cash and Check Card
• Interest compounds and credits account monthly
• Unlimited Deposits
• Check Writing Capability
• Power of Attorney Debit Card: $1.25/month
• Bill Pay: $2.00/month
• Service charge: $2.00/month (unless zero balance, then no service charge)
• Account Set-Up Fee: $9.95

INTEREST RATE INFORMATION
Tier	Balance	Interest Rate	Annual Percentage Yield
1	$0-$999.99	.075%*	.075%
2	$1,000-$4,999.99	1.00%*	1.00%
3	5,000 or more	1.50%*	1.51%

*6 month interest penalty applies on all accounts closed within two years of opening