Consumers and HSAs

Who is eligible for an HSA?

Any individual, including those who are self-employed, enrolled in a qualified health plan is eligible. Let a Simsbury Bank advisor help you determine if you qualify for an HSA. Qualified health plans are called High Deductible Health Plans, or HDHPs, and have the following characteristics:

These amounts are adjusted by the IRS for cost-of-living increases.
If a participant has other health insurance, is on Medicare, or is a dependent on someone else’s tax return they are not eligible.

* Some insurers do not include preventive health care in the deductible.
** The limit for maximum out-of-pocket expenses includes deductibles, co-payments, and certain other items, but not premiums.

How does an HSA benefit me?

There are many benefits including significant tax advantages and income for retirement. Also, HDHP premiums are usually lower than traditional premiums, so considering an HDHP and an accompanying Simsbury Bank HSA could be a smart financial decision for you and your family.

Let a Simsbury Bank advisor explain all of the benefits, but some are:

• Contributions to HSAs are tax deductible
• Employer contributions are not counted as income to you
• Earnings are tax-deferred
• Distributions are tax free if used for qualified medical expenses
• Balances can be carried from one year to the next
• Balances are portable; the HSA is your own property, not your employer’s
• Balances can be used as a retirement savings account
• Beneficiaries can be named to the HSA account.

Earn Premium Interest Rates

In addition to Simsbury Bank advisors’ professional advice, we offer premium rates for HSAs. The rates are tiered so that the larger your balance, the more you earn.

Where do I use HSA funds?

You pay for your medical expenses up to your plan’s deductible with the funds in your HSA. These expenses include doctor visits, tests, procedures and prescriptions. You can also use the funds in your HSA for any reason after age 65 (subject to tax). There are a variety of other expenses that qualify – let a Simsbury Bank advisor explain these fully.

How do I access the funds in my HSA?

Simsbury Bank offers a multitude of ways to use your HSA for your convenience – by debit card, by check, by SBT Online bill payment and even by withdrawing cash from an ATM.

What kind of account types are there?

Most newly-opened HSAs start as a checking account. As your balance grows, or as you rollover funds from other HSAs you may have, you can open an HSA CD that offers premium interest rates. Let a Simsbury Bank advisor help you choose the most advantageous account types for your situation.

How do I deposit money into an HSA?

Most employers can set up a direct deposit for you to make contributions at each regular payroll. Employers may choose to make additional contributions, and you can deposit your own lump sum contributions from time to time. And, you can roll over funds from another HSA. You can even move some IRA funds to an HSA. Please talk with a Simsbury Bank advisor for complete information on ways to make the most of your HSA account.

How much can I contribute?

Contribution limits vary depending on the insurance plan you are enrolled in and your age.

Let a Simsbury Bank advisor help you figure your maximum contribution so that you make the most of this tax advantaged account.

If participants reach age 55 in any year they may also contribute additional “catch-up” amounts.

Regular and “catch-up” contributions may come from any source, including payroll deductions, employer contributions, rollovers from other HSA accounts and transfers from other accounts, though certain forms may be required for contributions other than payroll deduction. Plan sponsors may contribute toward this account. Any sponsor contributions are counted toward the maximums allowed.

How do I access information on my HSA account?

Simsbury Bank will send you a monthly paper statement. You’ll also have access through SBT Online, our Internet banking site and our 24 hour telephone banking.

What kind of reporting does Simsbury Bank do?

Simsbury Bank provides all of the required reporting to you and the IRS.

What does an HSA cost?

There are no fees if your HSA Checking account balance is $2,500 or more. If it’s below that, there is a low $3.00 per month service charge which is waived for the first year. The $10 enrollment fee is waived if your employer refers you to Simsbury Bank. Ask a Simsbury Bank advisor if your employer is one of our preferred partners.

We also offer an HSA CD so that as your balance grows, or you roll over funds from other HSA accounts, you can benefit from premium longer-term rates. There is no annual fee and a minimum balance of $500 if you also have an HSA Checking account at the Bank. If you are no longer eligible to make contributions to an HSA, you can open an HSA CD-only for a low annual fee of $20.

How do I get more information and enroll?

Simsbury Bank’s highly trained advisors can help you with any questions you have about HSAs. We can open an HSA for you in any of our branches. And, for your added convenience, we work closely with area employers to arrange for a Simsbury Bank advisor to visit the employer’s site to answer questions and enroll employees.

Call Simsbury Bank today to learn how you can earn a premium interest rate and save for your retirement!