Tag Archives: HSA

What Is An HSA?

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Healthcare image.jpegAs you’re navigating the world of health insurance you likely have encountered the term HSA. Do you know what HSA means?

HSA stands for Health Savings Account and this is an easy way for folks who have high deductible insurance to save for medical expenses and to reduce their taxable income.   If you are enrolled in a high-deductible insurance plan as defined by the government, you can qualify for an HSA. This year, to be eligible for an HSA, you must have an annual deductible of at least $1,350 for an individual and $2,700 for a family. This is set by the federal government and is subject to change in future years.

Each year you will decide how much to contribute to your HSA account although your annual contribution cannot exceed government mandated maximums. For 2018, the contribution limit for an individual is $3,450 and the contribution limit for a family is $6,900. Adults over 55 can add up to $1,000 more.

These contributions are tax deductible and the distributions are tax free when used for qualified medical expenses.

At VCNB, you will receive a debit card and a monthly statement with check images. Your first order of checks will be free and you will have unlimited checking writing. There is an initial $25 set up fee for the account. This fee will be waived for customers who present this coupon.

There is also a $3 monthly fee which will be waived for customers who select eStatements.

Want to learn more or open an HSA online? Click here and look under the Savings Accounts tab.

You can also seek more information or open an HSA in any of our seventeen locations.

 

 

Have High Deductible Insurance? Our HSA Can Help!

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Are you familiar with the Health Savings Account or HSA? Many Americans could benefit from this type of savings account but are unaware that the option exists.

An HSA is a tax favored savings account used to pay for medical expenses. This account was created specifically to help individuals and families who have high deductible health insurance plans be able to save money for qualified medical expenses.

Financial healthVCNB offers an HSA that is both affordable and easy to use, according to VCNB Senior Vice President Jane Nickels. Nickels said that to be eligible for an HSA in 2015, you must have an annual deductible of $1,300 for an individual and $2,600 for a family and must not be on Medicare.

She said that contributions, up to a limit, are tax deductible and withdrawals to pay qualified medical expenses are never taxed. The money you deposit into your HSA rolls over from year to year and continues to grow tax deferred.

The funds in your HSA can be used for qualified medical expenses for any family member who you claim on your taxes. Qualified medical expenses are defined by the Internal Revenue Tax Code. You can read the list of qualified medical, dental and vision expenses here.

Remember that any funds you withdraw for non-qualified medical expenses will be taxed at your income tax rate plus 20 percent tax penalty unless the funds are withdrawn for death, disability or after age 65.

Nickels explained some of the reasons customers like the HSA. “There are many, many reasons people like their HSA but they are becoming increasingly popular because of the rise in health care costs and changes in their insurance plans,” Nickels said.

She indicated that many younger people use their HSA to save for old age. “Because the money will roll over every year, a lot of young people see it as a tax free way to save for retirement. If you are healthy and don’t have many medical expenses, the savings can continue to accumulate until the time you need the money whether it be for medical expenses or for something else after you reach 65.

At VCNB, our Health Savings Accounts include a debit card, one box of free checks, a monthly statement, online access and interest checking with tiered rates. If you request a monthly paper statement, there is a $3 monthly fee. There is no fee if you accept electronic statements.

If you think an HSA would make your life better, contact your local branch or call 1-800-542-5004 to learn more or to get started. Click here to visit our Online Learning Center to view a video about our HSA.

HSA 2013 Tax Year Deadline Approaches

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Are you thinking about opening a Health Savings Account (HSA) with VCNB?  Time is drawing near if you want your contributions to count toward the 2013 tax year.

An HSA is beneficial to families and individuals with high deductible insurance plans who want to save money for qualified medical expenses. To be eligible for an HSA in 2014 you must have an annual deductible of at least $1,250 for an individual or $2,500 for a family

Contributions to an HSA are tax deductible and withdrawals to pay qualified medical expenses are never taxed.  The money you deposit into your HSA rolls over from year to year and can be used only for approved medical, vision and dental expenses.

April 15, 2014 is the deadline for contributions to count toward the 2013 tax year.

An HSA at VCNB features free checks with unlimited check writing, a debit card, a monthly statement, online access and interest checking with tiered rates. There is a monthly service charge of $3 and an initial set-up fee of $25. However, if you open an HSA now through March 31, 2014 you can find a coupon here. This coupon can be used to waive the initial set-up fee.

Do you believe an HSA is right for you? At VCNB we have account representatives who can talk to you about eligibility requirements and to help you get started! Call your local branch or 1-800-542-5004 to talk with one of our knowledgeable account representatives.

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Health Savings Accounts help with high deductible insurance

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health savings account familyThis month we are talking a lot about the Health Savings Account or HSA. An HSA is a tax favored savings account created to pay medical expenses.

These accounts are offered to help individuals and families with high deductible health insurance plans to save money for qualified medical expenses. While this is an extremely helpful savings tool, many Americans are not familiar with this kind of account or how it works.

To be eligible for an HSA in 2014 you must have an annual deductible of at least $1,250 for an individual or $2,500 for a family

VCNB Senior Vice President Jane Nickels said that contributions to an HSA are tax deductible and withdrawals to pay qualified medical expenses are never taxed.  The money you deposit into your HSA belongs to you – not your bank, employer or the government. That money rolls over from year to year and can be used only for approved medical expenses, according to Nickels.

“Our customers tend to like the HSA because their contributions and distribution are tax free. Once it’s set up, it’s easy to use and easy to maintain,” Nickels said.

She explained that unused money in your HSA isn’t forfeited at the end of the year. Instead, it continues to grow, tax-deferred. “Best of all, the unused money that you accumulate in your HSA rolls over to the next year so you never have to worry about losing your money,” she explained.

Qualified medical expenses are defined by the Internal Revenue Tax Code and you can read a list of these qualified medical, dental and vision expenses here.

A word of caution: any funds you withdraw for non-qualified medical expenses will be taxed at your income tax rate plus 20 percent tax penalty if you are under age 65.

At VCNB, our Health Savings Accounts feature free checks with unlimited check writing, a debit card, a monthly statement, online access  and interest checking with tiered rates. There is a monthly service charge of $3 and an initial set-up fee of $25. However, if you open an HSA now through March 31, 2014 you can find a coupon here.  This coupon can be used to waive the initial set-up fee.

Do you believe an HSA is right for you? At VCNB we have Account Representatives who can help you get started! Call your local branch or 1-800-542-5004 to talk with one of our knowledgeable accounts representatives. You can also watch a short video on our website by clicking here.

Member FDIC.