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Health Savings Accounts

If you’re searching for a way to balance rising health care costs, a Health Savings Account may be the right option for you!

What is a Health Savings Account?

A Health Savings Account (HSA) is a tax-advantaged savings account that can be established by anyone with a Qualified High Deductible Plan to pay for out of pocket medical expenses.
  • Pay current medical expenses or save for future needs
  • Tax-Deductible contributions
  • Tax-deferred earning
  • Balance carries over from year to year
  • Remains with you, regardless of change in coverage or employment
At First Bank Hampton, we have removed all the hassles and obstacles when it comes to setting up and using your First Bank Hampton HSA:
  • No minimum opening deposit amount
  • No set-up fees
  • No minimum balance
  • Interest earned
  • Free Debit Card
  • Free monthly paper statements or Estatements
  • Transfer funds between your accounts with online or mobile banking
  • Small monthly service fee
  • May be used for preventive care
  • Automatic deposits available for employee contributions.
  • Once age 65, you may use your account to pay for things other than medical expenses, the amount withdrawn will be taxable income but will not be subject to any other penalties.
  • Individuals under age 65 who use their accounts for non-medical expenses must pay income tax and up to 20% penalty on the amount withdrawn.

Ease the pain of “Out of Pocket” medical bills with a Health Savings Account. Our HSA lets you set aside money for all types of medical expenses, so if the need arises, you can focus on getting well and not how you’re going to pay the bills.
  • You must have coverage under an HSA-qualified “high deductible health plan” (HDHP).
  • You must have no other first-dollar medical coverage (however, other types of insurance like specific injury insurance or accident, disability, dental care, vision care or long-term care insurance are permitted).
  • You are not enrolled in Medicare.
  • You are not claimed as a dependent on someone else’s tax return.

What is a High Deductible Health Plan?

An HSA-qualified Health plan¹ must have:
  • A minimum deductible of $1,400 for self-only coverage² and $2,800 for family coverage².
  • A maximum out of pocket (including deductible and co-pays) of $7,000 for self-only coverage and $14,000 for family coverage². 
In general, the deductible must apply to all medical expenses (including prescriptions) covered by the plan. However, plans can pay for “preventive care” services on a first dollar basis.

Distributions may be taken for medical expenses of the individual covered by the HDHP, the spouse of the individual, or any dependent of the individual, regardless of whether they are covered by the individual’s HDHP or not.
  • You and your employer can contribute to your HSA each year that you are eligible if you do not exceed the total annual maximum contributed amount.
  • $3,600² Self Coverage or $7,200² Family Coverage 2021 rates
  • The contribution deadline is April 15 each year.
  • Individuals age 55 and older can also make an additional “catch-up” contribution. The maximum annual catch-up contribution is $1,000.
  • Individuals age 65 and older, still working and not drawing Medicare, may continue to contribute annually.
  • Transfers / rollovers from HSAs are allowed and not subject to the contribution limits.

¹ Other criteria apply. Always check with your insurance provider to be certain that your HDHP you are considering is an HSA-qualified or with your financial adviser or tax consultant for more details about the tax-deductibility status.
² 2021 amounts. Subject to cost of living adjustments