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HSA INFORMATION CENTER
HSA > Individuals & Families > Important Things To Know
Here are is a quick reference of important things for a Health Savings Account participant to know.
IRS Guideline Changes
- The IRS adjusts maximum HSA contributions each year for inflation. The criteria for an insurance plan to qualify as a High Deductible Health Plan (HDHP) is also adjusted for inflation. Click here for current guidelines.
Contributions
- Neither an employer nor a plan participant is required to contribute any money to a Health Savings Account. Click here for more information on this topic.
- Each participant age 55 to 64, not enrolled in Medicare, qualify for an additional "catch-up" contribution.
- Contributions are allowed for the prior tax year through April 15th. Extensions to taxpayer's filing date does not extend the contribution cut-off date.
- Every deposit is considered a contribution. A tax penalty may be assessed if your contributions accidentally exceed your annual limit.
- Each year, the bank will use Form 5498-SA to report to the you and the IRS any contributions made to your HSA Savings account.
- HSA activity for the year is to be outlined by the participant on IRS Form 8889 and included with the his or her tax return.
- You cannot establish or contribute to an existing HSA if you have secondary insurance or are covered by an insurance plan that is not a HDHP, such as a plan
offered by the employer of your spouse or Medicare.
- An individual qualifies for the full annual contribution if they are covered by an HSA-eligible insurance plan by the first day of the last month of their tax year, usually December 1st. This is called the "last month rule". If contributions were made based on the "last month rule" the
participant must remain in an HSA-eligible insurance plan through the last day of the next tax year, this is called a "testing period". In our example, this period would end December 31st of the following year.
Distributions
- A distribution is any withdrawal from an HSA Savings account.
- Make sure to withdraw the correct amount of money, since money withdrawn from an HSA Savings account cannot be deposited back into the plan without being counted as a new contribution.
- Receipts and records are maintained by plan participant in case the IRS asks for proof of expenses. Distributions must not exceed the total dollar value of your receipts
of qualified medical expenses for plan participants.
- Generally, HSA distributions cannot be used to pay insurance premiums unless the participant is age 65 or over, receiving unemployment benefits or health care continuation coverage under
any federal law, or the premiums are for long-term care coverage.
- Each year, the bank will use Form 1099-SA to report to you and the IRS any distribution taken from your HSA Savings account.
- HSA activity for the year is to be outlined by the participant on IRS Form 8889 and included with the his or her tax return.
HSA Companion Checking Account
- The Companion Checking account is provided for convenient recordkeeping and access to money in the HSA Savings, but is outside the HSA plan.
- Whenever a check or Visa® Check Card transaction is processed against the Companion Checking, money is automatically moved from the HSA Savings as a distribution.
- The Companion Checking account should typically have an ending balance of $0 each day when using the automatic transfer
feature.
Medicare Enrollees
- Persons are usually automatically enrolled into Medicare when they become eligible on their 65th birthday. Medicare enrollees can not contribute to a Health Savings Account.
- If a person has already contributed to a Health Savings Account prior to enrolling in Medicare, the HSA funds remain accessible and can be used by the account owner.
- Medicare eligible persons can continue contributing to a Health Savings Account only when they provide proof that they are not currently enrolled in Medicare.
Changing Coverage
- To make sure all information is current and accurate -- especially beneficiary information -- the participant must notify the bank when changing insurance coverage from an individual plan to a family
plan, or visa versa.
Death of HSA Holder
- When a spouse is designated beneficiary, the HSA is treated as the spouse's HSA upon death of the participant.
- When any other person is designated as beneficiary, the account stops being an HSA when the participant dies, and the fair market
value of the HSA becomes taxable to the beneficiary in the year of the participant's death.
- If the participant's estate is the beneficiary, the value is included on the participant's final income tax return.
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Community Bank of San Joaquin is participating in the FDIC's Transaction Account Guarantee (TAG) program. Under that program, through December 31, 2010, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account.
Noninterest-bearing checking accounts include Demand Deposit Accounts (DDAs) and any transaction account that has unlimited withdrawals and that cannot earn interest. Also included are low-interest NOW accounts (NOW accounts that cannot earn more than 0.50% interest through June 30, 2010 and no more than 0.25% thereafter) and Attorney-Client Trust accounts, also known as Interest On Lawyers Trust Accounts (IOLTAs).
Coverage under the TAG program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.
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Lost or stolen Visa® Check Card, call
(209) 956-7000 Monday-Friday 9am-5pm or
1-800-754-4128 after hours.
For other important telephone numbers, click here.
Community Bank of San Joaquin
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Main Office
22 West Yokuts Avenue
Stockton, CA 95207-5715 [map]
209-956-7000
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Waterloo Office
4426 East Waterloo Road
Stockton, CA 95215-2306 [map]
209-373-4300
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Services Available:
Administration, Branch, Loans,
Full-Service Drive-Up, ATM* and
Night Depository*
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Services Available:
Branch, Loans, ATM* and
Night Depository*
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Office Hours:
Monday-Thursday 9am-5pm
Friday 9am-6pm
Saturday 9am-1pm
and By Appointment
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Office Hours:
Monday-Thursday 9am-5pm
Friday 9am-6pm
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*This service available 24 hours a day.
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