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Welcome and thank you for viewing the presentation

Why First National Bank in Paxton should be your bank for HSA

accounts.

HEALTH SAVINGS ACCOUNT

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Contents

• Benefits of HSAs• Who is First National Bank in

Paxton?• What First National can do for

you – the First National Bank HSA Savings Account

• Account opening process

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What HSAs do for individuals• Contributions are tax deductible. Contributions can be

made as a payroll deduction which is not subject to FICA or can be taken as an above-the-line deduction on tax forms.

• Earnings, if used for qualified medical expenses, are tax free.

• Unused assets, after the age of 65, are treated as retirement assets. However, funds can still be used for qualified medical expenses tax free.

• Contributions made by an employer on behalf of the employee are fully vested. If employment is terminated, the employee still owns the funds.

• Funds are carried over from year to year which can accumulate to significant amounts.

• HSA assets may be used to cover family members not eligible for an HSA (e.g. Spouse over the age of 65)

• Employees can purchase certain types of insurance with the funds

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What HSAs do for you as the Employer• Contributions made to an employee account are tax

deductible by the employer.• HSAs can be offered through cafeteria plans for

convenience.• Contributions can be made up to the tax filing date for the

individual.• Employer can choose to offer full or partial funding of

HSA accounts to their benefit plans.• Contributions are considered employer-provided

coverage for medical expenses.• Overall health insurance costs may decrease by raising

the deductible and lowering the monthly premiums.• Increased ability to attract and retain employees by

offering additional benefits.• Employees view as a retirement benefit.

Who is First National Bank in Paxton?

The First National Bank in Paxton is a National bank with FDIC insurance. The bank is regulated by the OCC (Office of The Comptroller of the Currency. The bank is privately held and is run by a highly regarded Board of Directors.

The bank operates from Paxton, Illinois, and offers a full array of personal and commercial banking products. First

National offers not only competitive rates and product choices.

First National has a difference. First National still has bankers and lenders and real people answering the telephone and making decisions. We offer all of the

products that the large banks do with the same home town personal service that our customers have become accustom

too.

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Benefits you can be proud to provide…

First National Bank in Paxton First National Bank in Paxton

can give each employeecan give each employee

individual attention while still individual attention while still offering broad banking services. offering broad banking services.

– – a solid choice for thea solid choice for the

investment in HSAs. investment in HSAs.

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What you and your employees will receive from First National Bank in Paxton:

• A quality banking relationship.• Information packet explaining the use and

benefits of HSA accounts.• Debit card for convenient POS purchases.• Online banking and bill pay for easy management

of their account - 24-hour access. • A Friendly Staff to field HSA or banking

questions.• And, some of the best interest rates in the HSA

Market to keep valuable savings growing.

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The First National Health Savings Account

Features:• Unlimited no fee check writing

• No fee custom MasterCard debit card• No fee Online banking (Charges may be incurred

by Internet provider)

• Bill Pay• No monthly minimum deposit

requirement• No monthly or annual fee

• Initial deposit of $50• Monthly statements mailed

. MasterCard subject to credit approval.

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How Much To Fund?It is up to you within the limits allowed by

the government.

2008 HSA Contribution Limits

Self Only Family

AnnualContributionLimit

$3,050 regardless of the annual

deductible limit in your High-

Deductible Health Plan

$6,150 regardless of the annual

deductible limit in your High-

Deductible Health Plan

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2008 High Deductible Health Plan Limits

Self Only Family

Annual Deductible $1,200 or more $2,400 or more

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Entering the HSA mid-year

• If HDHP coverage is not in place for an entire year, the account holder will still be able to make the maximum contribution. All contributions (including catch-up contributions) must are no longer pro-rated. You can now make a full years contribution even if you start as late as December. It is the account holders’ responsibility to make the appropriate contribution.

Make Your HSA providerFirst National Bank in Paxton

We look forward to working with you and/or your employees