Health Savings Accounts

Grand Valley Bank is offering Health Savings Accounts

How will a Health Savings Account (HSA) benefit me?

• You are in charge of your own funds and you can make your own decision on the medical procedures you want to pay for.
• Your premiums are usually less than most health insurance plans.
• If you don't use the money, you won't lose it.You can save the money for the future.

How does an HSA work?

• An individual enrolls in a qualified High Deductible Health Insurance Plan (HDHP), then a tax deductible HSA may be opened to pay for medical expenses.
• The money deposited is tax deductible and the interest earned is tax free if used for medical purposes.
• Unused balances roll over from year to year and are yours to keep.

Who is eligible for an HSA?

Basically, any individual that -

• Is covered by a qualified High Deductible Health Insurance Plan (HDHP)
• Is not covered by other health insurances
• Is not eligible for Medicare
• Cannot be claimed as a dependent on someone else's tax return

HSA Contribution Rules

• You can deposit funds to your HSA in any amount or frequency you wish up to the allowable maximum.
• Your annual HSA deposit can never exceed your plan's deductible (except for catch-up contributions).
• The allowable contribution you put into your HSA is a front page, line item deduction on your Federal Tax Return.
• You must have a qualified HDHP to open or make contributions to an HSA.

HSA Distribution Rules

• Simply write a check to pay for any allowable health expenditures.
• Distributions are tax free if used for allowable medical purposes.
• See publication 502 for complete list of allowable expenditures

• Examples - Dental Services, Prescriptions, Over-the-Counter Medicines, Nursing Care, Vision Services, etc.

Grand Valley Bank is offering Health Savings Accounts with no set-up fees and you pay no service charges if you keep a balance of $750 or more in the account. You'll receive free checks and a monthly statement with images for easy record keeping.