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Frequently Asked Questions

Your Health Savings Account (HSA) coupled with a High Deductible Health Plan (HDHP) can help you save money on your medical expenses. By choosing the HSA Plan you can save significantly on your health care premiums, plus MCHCP will contribute to your HSA.

Questions

How much will MCHCP contribute to my HSA?

In 2018, MCHCP will contribute $300 annually for an individual health plan and $600 annual for a family health plan (employee + additional individual).

How much can I contribute?

The IRS has a maximum limit for your HSA contributions. With MCHCP contributions, you can contribute up to $3,450 annually for individual health plans and $6,900 for family health plans (employee + additional individual). Individuals age 55 and older may contribute an additional $1,000 catch-up.

How do I contribute to my HSA?

You have several options:

  1. Make contributions through payroll
  2. Download Central Bank's mobile app and use Mobile Check Deposit
  3. Visit a Central Bancompany branch
  4. Make a funds transfer using Online Banking

How do I use my HSA money?

Taking money out of your HSA is as easy as taking money out of your checking account. There are no claims to file and you can simply use your HSA debit card or use Online Bill Pay. If you choose to reimburse yourself for eligible expenses, you can simply make a funds transfer using Online Banking, use Online Bill Pay or withdrawal funds at an ATM.

What happens to my money at the end of the year?

It stays in your account. The funds in your HSA are your money, there is no "use it or lose it" rule. Funds accumulate and carry over from year to year.

What are my tax advantages?

Can I use my HSA funds for a family member's eligible expenses?

Yes. Your HSA funds can be used for your spouse and dependent children's out-of-pocket eligible expenses, even if they are not on your health plan.

Can another individual have a debit card on my HSA?

Yes. The IRS requires your HSA to be an individual account, but you may name other people as authorized signers and they will receive debit cards.

How do I report my HSA on my income taxes (1040)?

In January, you will receive a 1099-SA and a 5498-SA from Central Bank to use in filing your taxes along with your W-2 from MCHCP.

What happens when I turn age 65?

As of age 65, funds can continue to be used for eligible medical expenses tax-free. You may also use the funds for non-eligible expenses and you are only subject to ordinary income tax without any IRS penalty. If you are covered by Medicare, usually at age 65, you can no longer make contributions to an HSA. Funds may still be used for eligible expenses, including Medicare premiums, tax-free.

What happens if I accidentally use the HSA funds for non-eligible expenses?

If you are under the age of 65, you will owe income tax plus a 20% IRS penalty. After 65, the 20% penalty is waived and you will only owe income tax, much like an additional retirement plan.

Can I use HSA funds before they are available?

No. Unlike an FSA, the funds must be in your HSA before you can use them. However, you are able to reimburse yourself for the eligible expense when funds are available.

Can I invest HSA funds?

Funds in your HSA earn interest automatically. You also may choose to invest excess funds by selecting "Invest My Excess HSA Funds" on your HSA activity page in Online Banking or by visiting with one of our investment representatives.

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