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| Health Savings Accounts (HSAs) |
 A Health Savings Account can be accomplished with a variety of deposit account types. To manage your HSA we offer both a transaction demand deposit account and any of our certificate of deposit accounts can be designated as an HSA. In response to rising health insurance premiums, many employers are raising deductibles on their plans in order to manage costs. This trend shifts the responsibility of payment for many common medical services to the consumer. The purpose of a Health Savings Account (HSA) is to help those with high deductible health plans pay for current and future qualified medical expenses. Contributions that eligible individuals make to their HSAs may be deductible and may be tax-free on their federal income tax return. The interest earned in an HSA is also federally tax free if the funds are spent on qualified medical expenses. Employers who contribute to eligible employees' HSAs can take a business tax deduction at year end. Consult a tax advisor for specific information. There are additional criteria you must meet to be eligible for an HSA, and a Farmers & Merchants personal banker would be happy to share these as well as further account benefits with you. Farmers & Merchants has designed a health savings account with your needs in mind. Accessing funds in a Farmers & Merchants HSA is as easy as writing a check or using a specially-designed Mastercard CheckCard. It is your responsibility to ensure HSA funds are spent on qualified medical expenditures. Funds that are used for non-medical expenses are subject to income tax and IRS penalties. If you would like to learn more about Farmers & Merchants health savings accounts, talk to one of our personal bankers. |
