by Merchants Bank

Your Health Savings Account Guide for 2019

With the New Year right around the corner, it’s also the time of year most people review their health insurance plans and make changes. If you’ve ever wondered about Health Savings Accounts (HSA), here’s our guide to the most frequently asked questions we get about this type of account.

What is an HSA?

If you have a qualifying high deductible health plan, you can use an HSA to save for future medical expenses. Merchants Bank’s HSA offers the return of a savings account with the convenience of a checking account.

“While it may seem like all health plans are high deductible, there is a designated amount that qualifies a health plan as high deductible,” Merchants Bank HSA Expert, Nancy Denstad, said.

Plan qualifications may change by year; you can check the current year’s guidelines on the IRS website.*

Who can have an HSA?

Any adult can contribute to a Health Savings Account if they:

Have coverage under an HSA-qualified “high deductible health plan” (HDHP)
Have no other first-dollar medical coverage (with limited exceptions)
Are not enrolled in Medicare
Cannot be claimed as a dependent on someone else’s tax return

How and when do I contribute to an HSA?

Contributions to a Health Savings Account can be made by the account owner, an employer, or both each year the account owner is eligible.
Total contributions are limited annually and can be made up to the amount of the plan deductible, not to exceed annual limits.
Contributions can be made as late as April 15 of the following year, like an IRA. However, all contributions will be assumed to be made for the current tax year unless deposited in-person and designated for the prior year by completing a Previous Year Contribution form.

How do I determine my HSA contribution?

Annual contribution limits change from year to year. This helpful article from the Society for Human Resource Management* can help you determine your eligible yearly contribution or consult your tax advisor.

What can I spend my HSA money on?

The money in an HSA is to pay for any “qualified medical expense” permitted under federal tax law, including medical expenses for yourself, your spouse or your dependent children. You may use your HSA to pay for expenses incurred by your spouse or dependent children even if they are not covered by a high deductible health plan.

“Popular uses for HSA funds include paying for a simple doctor’s check-up or physical, covering surgery costs and prescription medicines. You could also use HSA money for well-being expenses such as acupuncture,” said Denstad. “People don’t often realize HSA funds can be disbursed for dental and vision expense. For example, teeth X-rays, braces, eye exams and prescription glasses.”

For a complete listing, please review Publication 502 on the IRS website* or consult your tax advisor. Any amounts used for purposes other than to pay for “qualified medical expenses” are taxable as income and may be subject to tax penalties; tax penalties in certain situations, such as attaining age 65, do not apply (consult your tax advisor).

Apply for an HSA now or schedule an appointment with your l ocal Merchants Bank Customer Service Representative.

*You will be linking to another website not owned or operated by Merchants Bank, NA. Merchants Bank, NA is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. We encourage you to review their privacy and security policies which may differ from Merchants Bank, NA.

03.22.18

by Merchants Bank

Denstad Earns Certified Health Savings Professional Designation

Nancy Denstad, Certified Health Savings Professional

Nancy Denstad has earned her designation as a Certified Health Savings Professional (CHSP), enhancing her expertise in helping personal and business customers with Health Savings Accounts (HSAs).

“This additional training provides me with more resources to answer questions and provide answers for individuals and businesses,” Denstad said. “It’s an area that is quickly gaining in popularity because of its practicality and flexibility.”

For individuals to be eligible for HSAs they must meet certain requirements:

Be covered by a high-deductible health plan.
Generally, not be covered by a non high-deductible health plan.
Not enrolled in Medicare.
Not eligible to be claimed as a dependent on someone else’s tax return.

“Employees of businesses that offer qualifying high deductible plans view HSAs as quite a perk because it allows them to put away tax deductible funds, or pre-tax if made through a payroll deduction, interest earned on an HSA is tax deferred and, as long as withdrawals are made for qualified medical expenses, withdrawals are tax free,” Denstad said. Denstad works with many area businesses to offer the convenience of HSAs through payroll deduction.

Denstad pointed out the accounts are portable, so they can move between jobs, or in to retirement. The account can be used for the account holder, a spouse or a dependent, and the money transfers for a spouse’s use if the account holder dies.

“It’s an awesome account. There are other benefits, too,” Denstad said, adding she encourages people interested in HSAs or IRAs to check with their tax and/or insurance professionals for advice.

Denstad, the Deposit Account Services Manager in Winona, adds the CHSP designation to her designation as a Certified IRA Services Professional (CISP). To earn her CHSP designation Denstad completed coursework and testing from Ascensus, a leading Health Savings Account education and support services provider.

Merchants Bank has 21 locations, including its locations in Winona, Goodview and other Minnesota locations in St. Charles, Rochester, Rushford, Lanesboro, Caledonia, La Crescent, Spring Grove, Cannon Falls, Red Wing, Hampton, and the southern Twin Cities metropolitan suburbs of Apple Valley, Cottage Grove, Hastings, Lakeville and Rosemount. Merchants has Wisconsin locations in Eau Claire and Onalaska. Twin Cities-based Merchants Bank Equipment Finance is also a division of Merchants Bank, N.A.

02.01.18

by Merchants Bank

HSA’s Explained: How an HSA can Benefit You

It’s always a good idea to be prepared, whether for an emergency or planned expense. A Health Savings Account (HSA) can help you plan for medical expenses, be prepared for emergencies, or even help you save for long-term goals such as retirement. If you qualify, an HSA can benefit you, no matter what stage of life you’re in.

Who Qualifies?

Need a High Deductible Health Plan (HDHP).
Cannot have other first-dollar medical coverage (with few exceptions).
Cannot be enrolled in Medicare.
Cannot be claimed as a dependent on another person’s tax return.

“While it may seem like all health plans are high deductible, there is a designated amount that qualifies a health plan as high deductible,” Merchants Bank HSA Expert, Nancy Denstad, said.

Plan qualifications may change by year; you can check the current year’s guidelines at irs.gov.*

How Can YOU Benefit?

“An HSA can really be good for just about anything,” Denstad said.

An HSA is a way to designate funds for qualifying medical expenses for you, your spouse or dependent children (even if they are not covered under an HDHP). It can also be a way to set aside money to support your healthcare needs after retirement.

Contributions to an HSA can be claimed as a tax-deduction, and those contributions gain interest. Putting money into an HSA and letting it grow can be part of a retirement savings plan for future health expenses. Another benefit is that after the age of 65 the funds can be used for anything.

Merchants Bank has HSA’s in the form of a checking account or a certificate of deposit (CD). An HSA checking would be beneficial for those who know they’ll need convenient access to funds for medical costs, and a CD may be a great option for those looking to let contributions grow interest over a longer period of time.

How They Work

HSA’s are opened with HSA Trustees, such as Merchants Bank. Your HSA contributions are reported to the IRS each year by your HSA Trustee.

You, your employer, or both can make contributions (up to a certain amount) throughout the year. You can also make contributions for the previous tax year prior to April 15 of the following year.

Opening an HSA at Merchants Bank is as easy as opening a checking account; all you need to bring is a current ID.

Be Aware

There are some important things to remember about HSA’s:

There is a maximum amount you can contribute to an HSA for the year. Check irs.gov* for the current contribution limits.
You must not overdraw your HSA. If an overdraft occurs, it stops being an HSA account and there may be tax consequences for the account owner.
Contributions to an HSA must stop after the holder is enrolled in Medicare.
All contributions made to an HSA over the teller line are counted as current year contributions. To make a contribution to the previous year, see a Customer Service Representative.
You can visit irs.gov* anytime for the most recent qualifying HDHP amounts, qualifying medical expenses, contribution limits and other details.
Consult your tax advisor to see if an HSA could be right for you.

You could benefit from an HSA. To learn more, visit our website for more HSA information, including HSA calculators. Get started saving right away: contact one of our Customer Service Representatives today.

09.09.13

by Merchants Bank

Employers, if the answer is “Yes”

The high cost of insurance may be a challenge for many employers. But there may be an answer to these questions:

Are you combating higher health insurance premiums? Yes
Are you considering or are you offering your employees a high deductible health plan (HDHP)? Yes
Are you looking for peace of mind about your health care expenses? Yes
Do you want it to be as easy as possible? Yes

Then, you’ll want a Health Savings Account (HSA) from Merchants Bank.

The Winona Area Public Schools (WAPS) is one business that is offering HSAs, and the results have been good, according to Jolie Severson, Payroll and Benefits Administrator at WAPS. More than 411 of the more than 600 employees at WAPS have HSA accounts.

“I would rate our experience as 10 out of 10,” Severson said. “The staff at Merchants is helpful with setting up our employees’ accounts online, allowing personal funds to be directly deposited. All questions and special circumstances are answered with efficiency and satisfaction.”

Severson said there are a number of other benefits for employees.

“It’s not a use it or lose it account, so all the funds in the account stays with the employee for years to come. There are employees who are building up this account for retirement with tax-free dollars,” Severson said. “Employees have become better health care consumers as they manage their medical needs.”

Plus, the account is portable if the employee were to leave and can be transferred to a spouse upon death.

If you want to learn more, talk with your insurance agent and then talk to us at Merchants Bank. We’d be happy to come on-site to help educate your employees.

Merchants Bank Blog

Tag Archives: Health Savings

Your Health Savings Account Guide for 2019

Denstad Earns Certified Health Savings Professional Designation

HSA’s Explained: How an HSA can Benefit You

Employers, if the answer is “Yes”

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