| |
A health savings account (HSA) is a convenient, tax-advantaged* way to pay for qualified medical expenses. Eligible individuals can make tax-deductible contributions to the HSA, and funds can be withdrawn tax free when used for qualified medical expenses.
To qualify for an HSA, you must be covered by a high-deductible health plan (HDHP). Maximum allowable annual contribution limits apply.
Determine if you are eligible for an HSA in 2008 |
|
| |
| Health Savings Account |
| HSA Benefits |
- Funds remain in your HSA from year to year.
- Your HSA is not tied to your employer. Account stays with you even if you change jobs.
- Interest rates are tiered and competitive.
- Balances are FDIC insured.
|
| HSA Features |
- No minimum balance requirement
- No set-up fee
- No transaction fees
- Free BB&T Benefits Access debit card
- Free BB&T OnLine® with OnLine Bill Payment
- Monthly account statements, quarterly for Mutual Fund Investment Sweep option
- Mutual Fund Investment Sweep option available for balances over $3,000 with a minimum transfer of $500**
- Monthly maintenance fee of $3
|
| HSA Tax Advantages |
- Earnings are tax free* when used to pay for qualified medical expenses.
- Contributions, up to the annual contribution limit, are tax deductible.*
- Withdrawals for qualified medical expenses are tax free.
|
| HSA Eligibility |
To be eligible† for an HSA, you must be covered by an HDHP. Generally, an HDHP is a health plan with these features:
- A deductible of at least $1,100 for single coverage
- A deductible of at least $2,200 for family coverage
- A maximum annual out-of-pocket expense limit for allowed costs, not exceeding $5,600 for single coverage
- A maximum annual out-of-pocket expense limit for allowed costs, not exceeding $11,200 for family coverage
Additionally, you must meet the following criteria:
- You must not be covered by any other health plan other than another HDHP (with limited exceptions).
- You must not be eligible to be claimed as a dependent on another person's tax return.
- You must not be enrolled in Medicare.
2008 HSA eligibility worksheet
|
| HSA Contribution Limits |
The 2008 maximum contribution limits are as follows:
- For single coverage, annual contribution limit of $2,900
- For family coverage, annual contribution limit of $5,800
2008 HSA maximum annual contribution worksheet
|
| Rollovers |
2008 HSA rollover options are as follows:
- Rollovers* are allowed from your health flexible spending account (FSA) and health reimbursement arrangement (HRA) into your HSA. Limits and restrictions do apply, so consult your tax advisor.
- One-time rollovers are allowed from your individual retirement account (IRA) into your HSA. The rollover cannot exceed the HSA contribution limit for the year.
|
The tax information set forth above is written to support the promotion or marketing of health savings accounts and it is not intended to be used, and cannot be used, for the purpose of avoiding US federal tax-related penalties. Each person considering opening a health savings account should seek advice, based on the person's particular circumstances, from an independent tax advisor.
*Consult your tax advisor about the tax benefits applicable to health savings accounts and rollovers.
**Past performance of mutual funds, annuities, and other investments does not guarantee future results. An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the investment company can be found in the fund's prospectus. To obtain a prospectus, please go to BBTFUNDS.com. Please read the prospectus carefully before investing. Mutual funds, annuities, and other investments are:
- Not insured by the Federal Deposit Insurance Corporation (FDIC) or any other agency of the United States Government, Branch Banking and Trust Company, or any affiliate;
- Not deposits or other obligations of Branch Banking and Trust Company or any affiliate;
- Subject to investment risks, including possible loss of the principal amount invested.
†Other criteria may apply. Consult your health insurance provider or tax advisor.
|
|
| |
|
|
