Health Savings Accounts
Grand Valley Bank is proud to offer Health Savings Accounts (HSA) to those who have High Deductible Health Plans. This savings account lets you take advantage of the tax benefits offered by the IRS and it can help you save money to go towards your health care costs at the same time.
With an HSA account, you have control over where your health care dollars are spent. Your deposits can be tax deductible, and the account balance along with interest earned can be tax deferred when used to pay for qualified medical expenses. IRS Publication 502 will give you the most current qualification for those tax deferments. Keep in mind that the funds that are in your HSA account do not expire. Speak with your New Accounts Representative today to see how a Health Savings Account account will benefit you.
An individual must meet the following requirements to be eligible for a Health Savings Account (HSA).
- You must already be covered by a qualified High Deductible Health Insurance Plan (HDHP)
- You must not be covered by other health insurance
- You must not be eligible for Medicare
- You must not be claimed as a dependent on someone else's tax return.
- Your annual HSA deposit cannot exceed your plan's deductible (except for catch-up contributions after age 55)
- The allowable contribution 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 2020 and 2021 maximum contribution limits are as follows:
Participants age 55 and older are allowed an additional $1,000.00 per year as a catch up contribution.
- See IRS Publication 502 for list of allowable expenditures
- Pay for allowable health expenditures using your HSA checks or debit card
- Keep your receipts for the end of year tax benefit
Features & Benefits:
- E-Statements (all statements include images)
- This account pays interest.
- Debit Card
- Per Item Charges (Transaction Limitations):
Deposits made to this account are reported to the IRS as current tax year contributions unless otherwise requested at the time of deposit. Each debit (check or withdrawal ) is reported to the IRS as a distribution for the current tax year. Debits should be for legitimate medical expenses and you must maintain documentation for those expenses.
Five free debits per month, then $.25 per additional debit.
- How to Avoid the Monthly Maintenance Fee:
- Keep either a minimum balance of $750 or an average daily balance of $1,000 to waive the fee.
|Amount Needed To Open:||$100.00|
|Monthly Maintenance Fee:||$5.00|