HSA FAQs

An HSA is a savings product that offers a different way for consumers to pay for their health care. HSAs are actually a supplementary savings account used in conjunction with a High Deductable Health Plan (HDHP). HSAs enable you to pay for your everyday health expenses while saving for future qualified medical and retiree health expenses on a tax-free basis. You own and control the money in your HSA.

You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account.

You must have a HDHP if you want to open an HSA. Sometimes referred to as a “consumer driven” health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn’t pay for the first several thousand dollars of health care expenses (i.e. your “deductible”) but will generally cover you after that. Of course, when funded, your HSA is available to help you pay for the expenses your plan does not cover.

For 2011, in order to qualify to open an HSA, you HDHP minimum deductible must be at least $1,200 (self-only coverage) or $2,400 (family coverage). The annual out-of-pocket (including deductibles and co-pays) for 2011 cannot exceed $5,950 (self-only coverage) or $11,900 (family coverage). HDHP’s can have first dollar coverage (no deductible) for preventative care and apply higher out-of-pocket limits (and co-pays & coinsurance) for non-network services.

For 2011 the contribution limits are $3,050 for those that are individually insured and $6,150 for participants with family coverage. The catch-up contribution allowed for eligible participants 55 and older remains at $1,000.

For 2012 the contribution limits are $3,100 for those that are individually insured and $6,250 for participants with family coverage. The catch-up contribution allowed for eligible participants 55 and older remains at $1,000.

There are multiple ways to deposit funds in your HSA account:

1. Payroll Direct Deposit - Set up regular electronic deposits through your employer's payroll department. NOTE: Don't forget to stay within the annual contribution limit.
2. Bank by Mail using the HSA Deposit/Withdrawal Form.
3. Electronic Funding 
4. In person at any one of our convenient Chicago area locations.

Reimbursements from your HSA account to pay for medical expenses can be done in a variety of ways:

1. When medical expenses are incurred, use your American Chartered Bank HSA debit card to pay for services.
2. For debit card users, you have the ability to withdraw cash from ATMs in your community. ATM surcharges may apply. 
3. Purchase checks to reimburse providers or yourself for qualified medical expenses incurred.
4. Use American Chartered Bank's free Online Bill Pay to pay your medical vendors. NOTE: You must be enrolled in Online Banking in order to take advantage of Online Bill Pay.

As an HSA account holder, you must file IRS form 8889 with your tax return. Form 8889 tracks transaction activity on the HSA and determines the amount of eligible tax deduction for the account during the previous tax year. You are also responsible for keeping a paper trail of all transaction activity that occurs in the account during the tax year. Those items can include but may not be limited to Explanation of Benefits, doctor bills and transaction receipts. NOTE: American Chartered Bank is not a tax advisor. Please speak with your tax consultant regarding your reporting responsibilities for your HSA.

American Chartered Bank is required to provide annual contribution and distribution reporting to you and the IRS. * Distributions are reported using Form 1099SA. This form shows aggregate distributions from the HSA during the previous calendar year. Form 1099SA will be mailed to you at the end of January.

* Contributions are reported on Form 5498SA. This form shows aggregate contributions for the previous calendar year plus contributions made in the current year, up to the tax filing deadline, for the previous year. Form 5498SA will be mailed to you at the end of April.

Because HSA account holders can make previous year tax deductible contributions to an HSA up to the tax-filing deadline (April 15), the IRS requires HSA custodians to create Form 5498SAs and report contributions after April 15. Forms 1099SA and 5498SA are not included with your tax returns.

Through a third-party investment advisor, American Chartered Bank allows you to invest a portion of your HSA funds into select mutual funds. The investment program is self-directed, meaning the account holder is responsible for the investment decisions made on the account. All transactions are processed through our Online Banking service, designed to make the transfer of funds convenient for the account holder. HSA balances invested in mutual funds are not FDIC insured, may lose value, and are not guaranteed by the Bank.

*Investment Options are not FDIC insured, may lose value, and are not
guaranteed by the Bank.

Please review the document Switch to an HSA Investment Account, sign the form and forward it to American Chartered Bank. You will be sent an email confirmation package that will provide guidance about the program. Included with the package, you will receive an Access ID and Password Information.

*Investment Options are not FDIC insured, may lose value, and are not
guaranteed by the Bank.

The investment account carries a $3.50 monthly fee.

*Investment Options are not FDIC insured, may lose value, and are not
guaranteed by the Bank.

American Chartered Bank does not have a toll-free number. We encourage clients with questions to call us during our business hours at 847.407.2603. If you are interested in avoiding the costs of long-distance phone calls, please email your questions to hsa@americanchartered.com.

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens a Health Savings Account. What this means to you: When you open a Health Savings Account with American Chartered, we will ask for your name, street address, date of birth and other information that will allow us to identify you.

If your identity is not verified (for example this can happen if you moved recently and your new address is not on file with the appropriate government agency), you may be asked to provide proof of your identity by providing a copy of your utility bill verifying your address or a copy of your Social Security card if the number does not match the verifying source’s records.

For additional information, please call HSA customer support during our business hours at 847.407.2603.