Grand Valley Bank is proud to offer Health Savings Accounts (HSA) to those who have High Deductible Health Plans. This 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.
Eligibility
If you meet the following requirements, you may be eligible to open 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.
Features & Benefits
Free
- eStatements
- This account pays interest based on the account balance.
- Debit Card
Per Item Charges (Transaction Limitations)
- Deposits made to this account are reported to the IRS as current tax year contributions. Prior tax year contributions are accepted between January 1st and April 15th. This needs to be 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. Maintain documentation for those expenses and supply them to your tax preparer.
- Five free debits on your account per month, then $.25 per additional debit.
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
Monthly Maintenance Fee
$5
Contributions
- 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 2023 and 2024 maximum contribution limits are as follows:
2023
- Individual: $3850
- Family: $7750
2024
- Individual: $4150
- Family: $8300
*Those 55 and over qualify to contribute an additional $1000 catch up contribution.
Distributions
- See IRS Publication 502 for the most current 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
A checking account as unique as you!
Grand Valley Bank offers a wide selection of personal checking accounts to suit any need or lifestyle.