HEALTH SAVINGS ACCOUNTS First Neighbor Bank introduces Health Savings Accounts, or HSAs. This new account is designed to help members or members and their families who are covered by a High Deductible Health Insurance Plan (HDHP) to take advantage of possible tax savings. HSAs are IRA-like accounts that are designed to cover medical expenses incurred by the HSA account owner, the account owner’s spouse and his or her dependents. HSA contributions are deductible and, if amounts are used for qualified medical expenses, distributions of basis and earnings are tax free.
Advantages: • Save for future medical expenses.
• Contributions are tax deductible.
• Earnings are tax deferred. • Tax free withdrawals for qualified medical expenses.
• Account can grow with investment earnings.
• Competitive interest rates.
If you have a high deductible health plan, come into any of our six branches to open your HSA account today. Rollovers from other institutions accepted.
