business Banking solutions

Business Banking Solutions

Business Health Savings Accounts

A Health Savings Account (HSA) from Bank of Lancaster works in conjunction with a high deductible health plan.

Account Features

  • Minimum opening deposit $50
  • Annual Fee
  • Additional deposits accepted anytime
  • Interest rate changes quarterly based on previous Quarter’s US Treasury Bill rates
  • Tax-free withdrawals can be made to pay or be reimbursed for qualified medical expenses incurred after establishing the HSA*

*Qualified medical expenses are those that qualify for the medical and dental expenses deduction, as explained in IRS Publication 502, Medical and Dental Expenses.

Qualifications

To qualify for an HSA, you must meet the following requirements:

  • Health coverage under a high deductible health plan (HDHP)
  • No other health insurance coverage that is not HDHP
  • Not entitled to Medicare benefits
  • Not claimed as a dependent on someone else’s tax return

Advantages

There are several advantages with our Health Savings Account:

  • Tax deductions when you contribute to your account
  • Contributions may be invested in a FDIC insured deposit account with the Bank or in a variety of funds providing tax-free interest and investment earnings
  • Funds roll over from year to year
  • HSAs are individually owned and portable and it becomes the property of a designated beneficiary upon death
  • At age 65 years or older or if you have become disabled, disbursements for non-eligible expenses may be made without penalty but subject to income tax
  • Your contribution could be taken out of your paycheck before taxes