Health Savings Account

To help offset the high cost of today’s health care, Alliance Bank offers a smart, flexible solution for both employers and employees. With a Health Savings Account (HSA) from Alliance Bank, employers can provide a cost-effective health care option while giving employees greater security and control over their health care spending. Our Health Savings Account is designed to be an easy-to-understand, easy-to-use way to offset high-deductible insurance costs.

Who is eligible for an HSA?

Anyone can contribute to an HSA if they have coverage under a high deductible health plan that meets IRS requirements, as long as they do not have other first-dollar medical coverage, are not enrolled in Medicare or cannot be claimed as a dependent on someone else's tax return.

HSA Advantages for employers:

• Flexibility. You can contribute as much or as little as you want while staying below the annual statutory limit on contributions to the account. Contributions can be made in a lump sum or in any amounts or frequency you wish. After the funds are deposited, they belong to the employee.

• Convenience. If you choose to make a contribution to an employee HSA, you may do so through Business eBanking or a bank deposit.

• Reduce administrative costs. Employees self-administer their HSA so there are minimal administrative costs for your company.

• Provide a savings vehicle for employees. Funds are assets that employees own, so they can use them to supplement their retirement income and build personal wealth.

• Enhanced employee benefits package. HSAs are an inexpensive health care option for employers that may otherwise not be able to afford healthcare for their employees. Providing affordable health care benefits can also help attract and retain your best employees.

HSA Advantages for employees:

• Greater control. You make all of the decisions about your HSA – how much money to put into the account, which medical expenses to pay from the account, and whether to roll over funds from year to year.

• Ownership. Funds remain in the account from year to year, just like an IRA. There are no "use it or lose it" rules for HSAs.

• Portability. You can keep your HSA even if you change jobs or your health care plan, become unemployed, change your marital status or carry over an unused balance at the end of the year.

• Tax Savings. An HSA provides you triple tax savings. 1) Contributions to your account are pre-tax, 2) Earnings through investments are tax free, 3) Withdrawals for qualified medical expenses are tax free.

• Flexibility. You can use the funds in your account to pay for current medical expenses, including expenses that your insurance may not cover. Or, you can save the money in your account for future needs.

• Growth. You can grow your account through tax-free investment earnings with a tiered rate structure that pays higher rates on larger balances.

• Safety. Your HSA at Alliance Bank is FDIC insured up to the maximum amount allowed by law.

To learn more about an Alliance Bank HSA, visit with an Alliance Banker or visit our frequently asked questions section.