health savings account
A Health Savings Account (HSA) allows you to pay for current health expenses and save for future qualified medical expenses and retiree health expenses on a tax-free basis. In order to establish an HSA, you must have a qualified High Deductible Health Plan (HDHP). The IRS determines the guidelines for qualified HDHPs. The current guidelines are:

account eligibility
You are eligible for an HSA if you:

• Are covered under an HDHP
• Are not covered by any other health plan that is not an HDHP
• Are not enrolled for benefits under Medicare
• Are not eligible to be claimed as a dependent on another person’s tax return

benefits and features 

• Contributions are excluded from your federal taxable income
• Earnings on the account grow tax-free
• Withdrawals are tax-free when used for qualified medical expenses
• Unused funds remain in the account for future use 

Lake Elmo Bank health savings account features

• No opening deposit requirement
• Tiered interest rates*
• Free HSA debit card
• Free internet banking access
• Account set-up fee of $25.00
• Monthly account statements
• Checks available upon request
• Minimum balance of $250*
• Below balance monthly charge of $3.00*
*Please refer to our Rate Chart for current interest rates.

using your health savings account
You can use the money in the account to pay for any “qualified medical expense” permitted under federal tax law. This includes most medical care and services, dental care, vision care and prescriptions. You can use the money in the account to pay for medical expenses for yourself, your spouse or your dependent children even if they are not covered by your HDHP.
Interest compounded monthly.
* Minimum balance and below balance monthly charge of $3.00 are waived for the first year.
 

Qualified HDHP Requirements
2012			Single Plan			Family Plan
Annual Deductible			$1,200 or more			$2,400 or more
Maximum Out-of-Pocket			$6,050			$12,100
2013			Single Plan			Family Plan
Annual Deductible			$1,250 or more			$2,500 or more
Maximum Out-of-Pocket			$6,250			$12,500
HSA Contribution Limits			2012			2013
Single Plan			$3,100			$3,250
Family Plan			$6,250			$6,450

catch-up contributions
If you are at least age 55 by the end of the calendar year and not covered by Medicare, you may also contribute an additional amount known as a “catch-up” contribution.

Catch-Up Contributions
Taxable Year	Maximum Catch-up
2012 - 2013	$1000