This little piggy’s got you covered.
When you compare healthcare options, do you feel overwhelmed by contributions and eligible expenses and tax benefits and investment options? You’re not alone.
ChoiceDirect offers a better way. When combined with a High Deductible Health Plan (HDHP), an individual Choice Health Savings Account (HSA) can make your healthcare premiums affordable while reducing your taxable income.
Best of all, we make the process simple. We have HSA account holders in all 50 states, and we’ve offered them since 2006.
How HSAs Work
Individuals establish an HSA to pay for eligible medical expenses not covered by a High Deductible Health Plan (HDHP) and to save for future health care expenses. If you’re eligible, an HSA can provide significant tax benefits. We often refer to them as “triple tax savings”:
- Tax-Deductible Contributions: Contribute up to the IRS maximum, and enjoy tax savings in an account that exclusively covers eligible medical expenses. HSAs cover the person who establishes the account and dependents covered under the High Deductible Health Plan.
- Tax-Deferred Growth: Your HSA funds grow in an FDIC-insured savings account without being subject to taxes, unless you use them for non-eligible medical expenses.
- Tax-Free Withdrawals: Your funds may be withdrawn tax-free, as long as you use them for eligible medical expenses. Like many retirement accounts, your funds roll over from year to year with no “use it or lose it” rules. If you wait until after age 65, your funds may be used tax-free for eligible medical expenses, or at your normal tax rate for other purposes.
Are You Eligible?
You’re eligible for an HSA if you’re:
- Covered under a High Deductible Health Plan (HDHP).
- Not covered under any other health plan other than the HDHP.
- Not enrolled in Medicare (typically age 65).
- Not claimed as a dependent on someone else’s tax return.
The IRS sets annual requirements for deductibles, out-of-pocket expenses and contributions. The 2019 requirements for single and family plans:
- Minimum Deductible:
Single: $1,350 Family: $2,700
- Maximum Out-of-Pocket Expenses:
Single: $6,750 Family: $13,500
- Maximum Contribution:
Single: $3,500 Family: $7,000
- Catch-Up Contribution (55+) 2010 and thereafter:
Single: $1,000 Family: $1,000
Besides the benefits outlined above, a Choice HSA offers competitive product features, benefits and rates. Regardless of your balance, you receive:
- Interest earned on every dollar.2
- Debit Card with unlimited point-of-sale transactions.
- Checks (prices vary by order).
- Online Banking and Bill Pay.
- Mobile Banking App.3
- Monthly eStatements for viewing transactions ($2 monthly fee for paper statements).
$0-2,499 = 0.25% APY1
$2,500-4,999 = 0.30% APY1
$5,000-14,999 = 0.35% APY1
$15,000+ = 0.60% APY1
daily minimum balances $0-$2,999
daily minimum balances $3,000+
1Annual Percentage Yield. Rate effective 10/22/18. Interest is compounded and credited monthly. 2Interest begins to accrue no later than the business day we receive credit for the deposit on non-cash items (for example: checks). Rates subject to change at any time. 3Fee may be assessed by your Mobile Service Provider. 4A monthly service charge of $2.50 will apply, waived on daily minimum balances over $3,000.
Contributing to Your Account
You can contribute to your Health Savings Account in several ways, including:
Check or Money Order
You can make contributions to your HSA by sending Choice Financial a check or money order. To ensure timely and accurate processing, include one of the deposit tickets provided with your checks or write your HSA account number in the memo area of your check. Please also include any special instructions (i.e. tax year, regular or catch-up contribution, etc.).
Contributions can be mailed to:
Choice Financial – HSA Department
4501 23rd Avenue South
Fargo, ND 58104
Transfers / Rollovers
You may be able to transfer or rollover the funds you have in an existing MSA, HSA, IRA or FSA (rules may apply) with another institution to establish or combine funds to your HSA with Choice Financial. Please contact our Customer Service team at (877) 380-3623 or eBanking@choicefinancialgroup.com to determine eligibility.
Contributions to your HSA can be made through an employer-sponsored plan such as a Section 125 Cafeteria Plan. In a Cafeteria Plan, the employer takes your HSA contributions out of each paycheck on a pre-tax basis. To implement this option, contact your employer, payroll or HR Department.
|Name:||Choice Financial Group|
|Account #:||Your HSA Account Number|
|Credit:||Customer Name and Account Number|
|Wire Cut-off Time:||2:30PM Central Time|
|Wire Fee for Incoming:||$15|
|Wire Fee for Outgoing:||$20|
For income tax reporting, your 1099 SA (for HSA distributions) is mailed by January 31 each year. Your 5498 SA (for HSA contributions) is mailed by May 31 each year.
As a Health Savings Account (HSA) Administrator we are not certified in giving tax advice, determining the eligibility of insurance or advising customers on how to pay out their HSA dollars. If you have a question on the eligibility of your insurance, contact your health insurance provider. If you question the eligibility of an expense, please refer to IRS Publication 502 on the IRS website.