2008 HSA Information

To Qualify

• Must have insurance coverage under a qualified high deductible health plan (HDHP) that is HSA compatible (If their policy has co-pays it is not an HDHP)
• Have no other first-dollar medical coverage (supplemental insurance is permitted)
• Are not enrolled in Medicare
• Cannot be claimed as a dependent on someone else's tax return

Maximum Contributions for 2008

• $2,900 if you have Self-only coverage
• $5,800 if you have Family coverage
  • NOTE: An individual may contribute the maximum amount regardless of the month they become eligible (They must stay in the plan 12 months following the last month of the year of the first year of eligibility)
• Individuals age 55 and older can also make a catch-up contribution of $900 for 2008
  • In order to contribute the catch-up contribution an individual must have their own HSA (a spouse may not put their catch-up contribution in an HSA titled in their spouses name)

Qualified Medical Expenses

• An individual can use the money in the account to pay for any qualified medical expense permitted under federal law (See IRS Publication 502)
  • Medical care and services
  • Dental and vision care
  • Over- the- counter medications
  • NOTE: The money in the account can be used to pay for medical expenses for the account holder, their spouse, or dependent children. The account holder can pay for expenses of their spouse and dependents even if they are not covered under the HDHP

About the Lake City Bank HSA

• Interest bearing checking account that earns interest from dollar one
  • HSA's are individual accounts/CANNOT be joint account,
  • Mutual funds available call Abbe Muta or Kristi Parker for information
  • $15.00 One time set-up fee
  • $3.00 Monthly fee

• Monthly statement
  • Can be combined with other LCB checking statements

• Free online access via LCB's personal Internet product
  • Free online bill pay
  • Ability to transfer between accounts to reimburse for "qualified medical expense"

• Debit Card
  • 1st card free, additional cards $3.00 each
  • Visa based/signature or PIN
  • Can be used anywhere "qualified medical expenses" are available/$1000 daily limit (Call the One Call Center to raise limit for 24 hours)
  • ATM access/$300 daily limit

• HSA checks
  • 50 checks for 10.85

Why choose Lake City Bank's HSA's

• HSA representative will go on-site to assist in the account opening process
• Convenience of 43 branch locations
• LCB will help facilitate the ACH transfer of employer/employee contributions
• Competitive fee structure and rate on return