Health Savings Accounts

As health care becomes more expensive, Alliance Bank offers a solution that fits the needs of both employers and employees. With a Health Savings Account (HSA) from Alliance Bank, employers can provide a cost-effective health care option while offering employees greater security and control over health care finances. 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.

Maximum Contribution Limits:

Coverage

Contribution Maximum 2016

Contribution Maximum 2017

Individual with Self Coverage

$3,350

$3,400

Individual with Family Coverage

$6,750

$6,750

Catch Up Contributions
(Age 55 and older)

$1,000

$1,000


Minimum Annual Deductible/Maximum Out-Of-Pocket Expenses:

Type of Coverage

Minimum Annual Deductible 2016

Minimum Annual Deductible 2017

Maximum Annual Out-of-Pocket Expenses 2016

Maximum Annual Out-of-Pocket Expenses 2017

Self-Only

$1,300

$1,300

$6,550

$6,550

Family

$2,600

$2,600

$13,100

$13,100

Key Advantages of an HSA for the employee:

  • 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 save the money 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; change your health care plan; become unemployed; change your marital status; or carryover an unspent 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 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.


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