Health Savings Accounts

Health savings Account (HSA) plans are a way to secure more affordable health coverage for you and your family while you save on taxes. An HSA is flexible, affordable and easy to use.

To participate in an HSA, you must be enrolled in a high deductible health plan (HDHP). An HDHP is a comprehensive health plan with an annual deductible of at least $1,100 for an individual and $2,200 for two or more family members. Maximum annual out-of-pocket for in network expenses cannot exceed $5,600 for an individual or $11,200 for two or more family members.

When you participate in an HDHP, you set aside money to pay for eligible out-of-pocket expenses. Money can be contributed to your HSA by you and/or your employer up to the amount of the deductible to a maximum of $2,900 for single and $5,800 family for 2008. Contributions are based on monthly limits.

Contributions to your HSA account are tax-deductible (tax deferred if made by your employer), and withdrawals are not taxed as long as they are used to pay for qualified medical expenses. Contributions that your employer makes to your HSA account are yours. There are no vesting requirements or forfeiture provisions. And unlike flex spending accounts, HSA plans do not have a "use it or lose it" requirement. Your account balance rolls over from year to year and may earn interest - tax free.

Money in your HSA plan can be used to pay for a variety of healthcare-related expenses ranging from routine physicals to prescription drugs. To pay for expenses, you simply present your HSA debit card to your provider, and money will be deducted directly from your HSA account.

Your HSA money is tax-free as long as it is used to pay for qualified medical expenses. If you use the money for any other reason, you will be required to pay income tax and a 10% tax penalty on that amount (you will not pay a penalty if you are disabled or age 65 or older). It is up to you to keep the supporting records to show the Internal Revenue Service whether you used the funds to pay qualified medical expenses.

Additional information on HSA's can be found at the United States Department of the Treasury www.treas.gov/offices/public-affairs/hsa/

To open your Range Bank HSA, complete the applicable enrollment materials and return to Range Bank. You may call (906) 475-4151 and ask for the HSA department with any questions.

Employers

• Health Savings Account (HSA) Authorized Signature List
• Health Savings Account (HSA) Employer Application
• Health Savings Account (HSA) Employer Enrollment Instructions

Participants

• Health Savings Account (HSA) Employee Application
• Health Savings Account (HSA) Employee Enrollment Instructions