Health Savings Account
Help your employees plan for the unexpected
Carolina Alliance Bank understands the challenges facing small-to-medium sized business owners. That’s one reason we provide custodial services for Health Savings Accounts (HSA) for your employees. Through HSA accounts, employees, who have a high-deductible health plan, can earn tax-free dollars on account contributions made by you and/or your employees. These contributions can be used to fund qualified medical expenses on a tax-free basis. Employer benefits • Employees’ HSAs are generally tax-deductible. (Consult with your company's tax and legal advisors.) • An HSA option gives employers the opportunity to offer more insurance coverage possibilities, meaning you can compete better to hire and retain the best employees. • HSA balances roll over at year’s end providing employees an incentive to use all health care dollars more wisely. Employee benefits • HSAs may be tax-deductible. (Deduction does not apply to contributions made by employer on behalf of employee.) • Employees are in control of their HSA (Carolina Alliance provides them with their own HSA debit card, among other benefits.) • HSAs have no “use it or lose it” requirement and can stay with employees when they change jobs or retire.
An HSA can be used for many expenses including: - Medical visits such as office visits and annual physicals - Prescriptions, some over-the-counter medicines and health care products - Preventive and restorative dental care, as well as orthodontia for children and adults - Eyeglasses, contact lenses, and laser eye surgery
Alliance Health Savings Account
$100 minimum opening balance No annual fee HSA debit card (ATM usage fees may apply) Free unlimited withdrawals Free checks upon request Free unlimited check writing Free online banking Free 24-hour telephone access Pays interest compounded daily and credited quarterly on collected balances. $3 monthly maintenance fee Monthly fee waived if $500 minimum daily balance maintained Contact the personal bankers at Carolina Alliance to open an HSA or for additional information about its features and benefits.
Carolina Alliance Bank makes available the HSA as custodian only. We recommend that you contact qualified tax or legal counsel before establishing an HSA.
Carolina Alliance Bank Health Savings Account Frequently Asked Questions
What is a Health Savings Account? A Health Savings Account (HSA) is a tax-exempt trust or custodial account established exclusively for the purpose of paying or reimbursing qualified medical expenses accrued by you, your spouse and/or dependents. What is an HDHP? An HDHP is a plan with an annual deductible of at least $1,000 for single (self-only) coverage or $2,000 for family coverage. These amounts are subject to cost-of-living adjustments (COLAs). How do I know if I am eligible for an HSA? You are eligible to make or receive an HSA regular contribution if, with respect to any month you: - Are covered under a high-deductible health plan (HDHP) - Are not also covered by any other health plan that is not an HDHP (with certain exceptions for plans providing preventive care and limited types of permitted insurance and permitted coverage) - Are not enrolled in Medicare; and cannot be claimed as a dependent on another person’s tax return How much can I contribute to my HSA? The maximum annual contribution amount is generally the lesser of 100 percent of the annual deductible under the HDHP or a specified amount (subject to COLAs). Additionally, a “catch-up” contribution is available for eligible individuals who are age 55 or older by the end of their taxable year and have not enrolled in Medicare. (Check with your financial advisor for additional amounts and more information).
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200 South Church Street, Spartanburg, SC 29306 864-208-BANK(2265) carolinaalliancebank.com