A Health Savings Account (HSA) is an account owned by an individual where tax-free contributions can be made and set aside to pay for current and future qualified medical expenses.

This account is established exclusively for the purpose of paying or reimbursing qualified medical expenses of a person, their spouse or dependents. You are the owner of the money in your HSA. You decide how to spend the money without involvement of a third party administrator.

You must participate in a High Deductible Health Plan (HDHP) to be able to establish an HSA. Your HSA helps you pay for the expenses your plan does not cover. To establish an HSA, your HDHP must meet the following guidelines (for 2008):

Tax Year 2008	Individual	Family
HDHP-minimum annual deductible	$1,100	$2,200
HDHP-maximum out-of-pocket	$5,600	$11,200
Contribution-100% of deductible-capped at maximum	$2,900	$5,800
Catch-up contributions available to those age 55 to 65	$900	$900
(Amounts represent tax year 2008 and are indexed annually for inflation)

An HSA can be opened at any convenient Citizens Banking Center located in Indiana and Illinois. You can also call our Customer Service Center at 1-888-226-5237 if you have any questions.

Major benefits of an HSA:

• Contributions can come from multiple sources – you, your employer or a family member.
• HSA contributions are tax-free via employer payroll.  If payroll deductions are not available the contributions can be used to reduce taxable income on next year’s Form 1040*.
• The account is portable, so it moves with you when you retire or change employers.
• Interest earned on the account is tax-free, as long as distributions are for qualified medical expenses.
• There are no set-up, annual maintenance or monthly service fees.
• There is no minimum balance requirement.
• Unused funds and interest are carried over, without limit from year to year.
• Citizens offers a variable tiered interest rate.
• You receive a detailed monthly statement with check images.
• A free HSA Check (debit) Card is included.
• There is unlimited check writing with free starter checks.
• You name your beneficiary. A surviving spouse maintains the HSA status.
• Free Online Banking is available.
• Free Online Bill Pay is available (with the HSA as a secondary bill pay account).
• Free Telephone Banking is included.
• You receive an annual summary statement.

*Please consult your tax preparer for more details.