Grand Valley National 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 decisions on the medical procedures you want to pay for.
- Your premiums are usually less than most health insurance.
- 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/Heber Valley National 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 receive free checks and receive a monthly statement with images for easy record keeping.
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