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

     
  • 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.
  • The IRS's 2012 maximum contribution limits are:
  •  
Taxable YearIndividualFamily
2013 $3,250  $6,450
2014 $3,300  $6,550
  • Participants age 55 and older are allowed an additional $1,000.00 per year as a catch up contribution.
  • 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, 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.

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