Health Savings Accounts

F&M Bank & Trust has an account to help you with your High-Deductible Health Insurance plans. 

A Health Savings Account (HSA) provides tax-deductible contributions, tax-free earnings, and tax-free withdrawals for qualified medical expenses.  Must be combined with high-deductible health insurance.
When a qualified medical payment is due, you can pay for it with the funds in your HSA account using a HSA VISA Debit Card or write a check from your account.

HSA Contribution Limits:

  • 2019 tax year
  • Contribution limit (single): $3,500
  • Contribution limit (family): $7,000
  • Additional catch-up contributions (55 or older, single and family): $1,000

HSA Benefits:

  • Account ownership - Funds are portable in the case of a change in employers.
  • Security - Your high deductible health plan and HSA help protect you against high or unexpected medical bills.
  • Flexibility in funding - Contributions may be made by the employer, the employee, or any other person or nonperson (charity, etc.) up to your maximum contribution limit.
  • Tax-free savings - Unused funds can roll over into the next plan year or be saved for retirement.
  • Tax deductible contributions - Contributions you make to your HSA may be tax deductible.*
  • Tax-free earnings - Interest earned on the account will accrue tax-free within the HSA.*
  • Tax-free withdrawals - Funds used for qualified medical expenses will not be taxed upon withdrawal.*
  • Catch up contributions - If you are age 55 or older you can make additional catch up contributions.
*Subject to IRS requirements. Consult your tax advisor for more information.

HSA Restrictions:

  • HSA funds used for non-qualified medical expenses will be assessed a 20% tax penalty and will also be taxed as regular income.
  • Funds withdrawn after age 65 (or if you become disabled) are exempt from the 20% tax penalty - however, the funds will be subject to income tax if not used for qualified medical expenses.

HSA Criteria:

  • Must be enrolled in a High Deductible Health Plan (HDHP).
  • Cannot be enrolled in Medicare.
  • Cannot be claimed as a dependent on someone else’s tax return.
  • Cannot be covered under your own or spouse’s employer sponsored health care plan that is not a qualified HDHP.

HSA Fees:

  • External transfer fee - $25
  • Closure of account within 6 months of opening - $25
  • Transaction adjustment - $25
  • Monthly service charge - $3 (Waived with e-Statement sign-up)

To open a Health Savings Account, contact the Client Representative Team.