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Welcome and thank you for viewing the presentation Why First National Bank in Paxton should be your bank for HSA accounts. HEALTH SAVINGS ACCOUNT Member FDIC Contents • Benefits of HSAs • Who is First National Bank in Paxton? • What First National can do for you – the First National Bank HSA Savings Account • Account opening process Member FDIC What HSAs do for individuals • Contributions are tax deductible. Contributions can be made as a payroll deduction which is not subject to FICA or can be taken as an above-the-line deduction on tax forms. • Earnings, if used for qualified medical expenses, are tax free. • Unused assets, after the age of 65, are treated as retirement assets. However, funds can still be used for qualified medical expenses tax free. • Contributions made by an employer on behalf of the employee are fully vested. If employment is terminated, the employee still owns the funds. • Funds are carried over from year to year which can accumulate to significant amounts. • HSA assets may be used to cover family members not eligible for an HSA (e.g. Spouse over the age of 65) • Employees can purchase certain types of insurance with the funds Member FDIC What HSAs do for you as the Employer • Contributions made to an employee account are tax deductible by the employer. • HSAs can be offered through cafeteria plans for convenience. • Contributions can be made up to the tax filing date for the individual. • Employer can choose to offer full or partial funding of HSA accounts to their benefit plans. • Contributions are considered employer-provided coverage for medical expenses. • Overall health insurance costs may decrease by raising the deductible and lowering the monthly premiums. • Increased ability to attract and retain employees by offering additional benefits. • Employees view as a retirement benefit. Member FDIC Who is First National Bank in Paxton? The First National Bank in Paxton is a National bank with FDIC insurance. The bank is regulated by the OCC (Office of The Comptroller of the Currency. The bank is privately held and is run by a highly regarded Board of Directors. The bank operates from Paxton, Illinois, and offers a full array of personal and commercial banking products. First National offers not only competitive rates and product choices. First National has a difference. First National still has bankers and lenders and real people answering the telephone and making decisions. We offer all of the products that the large banks do with the same home town personal service that our customers have become accustom too. Benefits you can be proud to provide… First National Bank in Paxton can give each employee individual attention while still offering broad banking services. – a solid choice for the investment in HSAs. Member FDIC What you and your employees will receive from First National Bank in Paxton: • A quality banking relationship. • Information packet explaining the use and benefits of HSA accounts. • Debit card for convenient POS purchases. • Online banking and bill pay for easy management of their account - 24-hour access. • A Friendly Staff to field HSA or banking questions. • And, some of the best interest rates in the HSA Market to keep valuable savings growing. Member FDIC The First National Health Savings Account Features: • Unlimited no fee check writing • No fee custom MasterCard debit card • No fee Online banking (Charges may be incurred by Internet provider) • Bill Pay • No monthly minimum deposit requirement • No monthly or annual fee • Initial deposit of $50 • Monthly statements mailed . MasterCard subject to credit approval. Member FDIC How Much To Fund? It is up to you within the limits allowed by the government. 2008 HSA Contribution Limits Self Only Annual Contribution Limit Family $3,050 regardless of $6,150 regardless of the annual deductible the annual deductible limit in your Highlimit in your HighDeductible Health Deductible Health Plan Plan Member FDIC 2008 High Deductible Health Plan Limits Annual Deductible Self Only Family $1,200 or more $2,400 or more Member FDIC Entering the HSA mid-year • If HDHP coverage is not in place for an entire year, the account holder will still be able to make the maximum contribution. All contributions (including catch-up contributions) must are no longer prorated. You can now make a full years contribution even if you start as late as December. It is the account holders’ responsibility to make the appropriate contribution. Member FDIC Make Your HSA provider First National Bank in Paxton We look forward to working with you and/or your employees