Products and Services

The First State Bank of Munich

First Choice Health Savings Account (HSA)

Quick Reference Guide

Eligibility
Anyone who is:	Covered under a high deductible health plan (HDHP) Not covered by another health plan that is not an HDHP (exceptions apply) Not enrolled in Medicare Not eligible to be claimed as a dependent on someone else's tax return

What is a qualifying High-Deductible Health Plan?

Generally, an HDHP is a health plan that satisfies certain requirements with respect to deductibles and out-of-pocket expenses. For purposes of this HSA, a high-deductible health plan is a plan with a minimum annual deductible and out-of-pocket expense limit (which includes money applied to your deductible and your coinsurance for coverage charges) as follows:

Tax Year	HDHP Coverage	Minimum Deductible	Out-of-Pocket Expense Limit
2007	Self-Only Family	$1,100 $2,200	$5,500 $11,000
2008	Self-Only Family	$1,100 $2,200	$5,600 $11,200
2009 And later	Self-Only Family	Subject to Cost Of Living Adjustments* (COLAs)

Who can make Regular Contributions?

If you meet the eligibility requirements for an HSA, you, your employer, your family members, or any other person (including non-individuals) may contribute to your HSA. This is true whether you are self-employed or unemployed. The maximum monthly contribution for eligible individuals is 1/12 of the annual contribution limits below:

Tax Year	HDHP Coverage	Contribution Limit	Catch-Up Contribution**
2007	Self-Only Family	$2,850 $5,650	$800
2008	Self-Only Family	$2,900 $5,800	$900
2009 And later	Self-Only Family	Subject to (COLAs)*	$1,000
**Eligible if you are age 55 or older and not enrolled in Medicare

Contribution Deductibility

Contributions are deductible by the eligible individual on his/her tax return Contributions made by employers are non-deductible on employee tax return HSA funds may grow tax-deferred if used for non deductible purposes Withdrawals for eligible medical expenses are tax-free

REPORTING: We will furnish you and the IRS with IRS-required statements reflecting the activity in your HSA annually.

For more information on program requirements, visit www.irs.gov

The First State Bank of Munich employees cannot give tax advice under any circumstances. Please contact your personal tax advisor to determine if this program is right for you.