Health Savings Account Health Savings Accounts (HSAs) are designed to help individuals save for future qualified medical and retiree health expenses on a tax-advantaged basis. To participate in an HSA, you must be enrolled in a high-deductible health plan (HDHP). An HDHP is a comprehensive health plan with an annual deductible of at least $1,100 for an individual and $2,200 for a family. Several new rules apply to Health Savings Accounts for 2007. For details on these changes, see IRS Publication 969 at www.irs.gov.

Health Savings Forms HSA Application HSA Designation of Beneficiary

Health Savings Account Advantages
Once you sign up for an HSA-eligible HDHP, open a Galena State Bank HSA and receive the following benefits:

Tax Savings - An HSA provides you triple tax savings:

	Tax deductible when you contribute to your account (tax-deferred if contributions are made by your employer)
	Tax-free earnings through investment
	Tax-free withdrawals for qualified medical expenses

Ownership - Unlike a Flexible Spending Account (FSA) with an employer, you own the money in your HSA account regardless of changes in your employment or marital status.

Investment Options - You can save the money in your account and let it accumulate from year to year, allowing your HSA to become part of your investment strategy. Earn more on balances $5,000 and over by investing in an HSA certificate of deposit.

Convenience - You have instant access to funds needed to cover qualified medical expenses when you make purchases with your HSA VISA® debit card.

ACCOUNT FEATURES

HSA Checking Account

	Minimum opening deposit of $25
	Free debit card for purchases*
	Earns tiered interest. Save more, earn more!
	Free Online Banking
	Free Bill Pay
	Free eStatements
	Avoid service charges by maintaining a $2,500 account balance and using your debit card for purchases

*Lost/Replacement card fee may apply.

HSA Certificate of Deposit

	Minimum balance of $5,000
	1-, 3-, and 5-year terms available
	Earn a competitive interest rate

Your HSA money is tax-free as long as it is used to pay for qualified medical expenses. If you use the money for any other reason, you will be required to pay income tax and a 10% tax penalty on that amount (you will not pay a penalty if you are disabled or age 65 or older). Qualified medical expenses are services that are typically covered by a health care plan, such as office visits, hospitalization, prescription drugs, and vision expenses. For a complete list of IRS-allowable health care expenses, refer to IRS Publication 502 "Medical and Dental Expenses" available at www.irs.gov. under "Forms and Publications."