Open your Health Savings Account On-line
Columbia River Bank just took the hassle out of HSAs.
At Columbia River Bank, we offer a full range of services to help our clients effectively manage HSA accounts. These services benefit HSA account holders, as well as employers or sponsoring organizations like associations, unions and school districts.
Columbia River Bank brings you the best Health Savings Account (HSA) product in the market today. With our HSA you receive the benefit of an outstanding third party administration and the value of a CRB insurance partner. Whether you need both the HSA and the insurance plan, or whether you already have your High Deductible Health Plan and only need the HSA, Columbia River Bank has the solution that is right for you.
Health savings accounts are like medical "IRAs" They are tax-advantaged accounts that individuals with high-deductible health insurance policies can fund and use to pay for medical expenses. Because they are tax-advantaged and balances can accumulate over time, HSAs can also be used to accumulate wealth.
HSAs are growing in popularity among employers, associations, consumers and anyone who wants to take control of health care costs. The question today is less about whether to open an HSA and more about choosing the right administrator.
Eligibility for an HSA simply requires three things:
- An HSA compatible High Deductible Health Plan (HDHP) must be chosen by the account holder.
- Account holders must be under age 65, or if over age 65, they must waive Medicare benefits.
- Account holders cannot be a dependent on another person’s tax return.
There are no employment requirements or income limits.
There are annual maximum contributions for an individual and for a family, regardless of the deductible limit in the health plan. There is no pro-ration of the deductible, regardless of the month in which the health plan becomes effective. So, as of 2009 you can make the full contribution, as indicated below IRS Sets Contribution Limits for 2009, regardless of the month in which you establish an HSA compatible high deductible health plan.
The IRS allows account holders and employers to contribute to an HSA at their convenience. Money may be deposited at any time and in any increment up to the maximum allowed per calendar year. Funds must be received by April 15 of the following year in order to qualify for a deduction.
The funds in an HSA rollover each year, are 100% vested for the employee on day one and can grow substantially over the years, due to the tax advantaged laws governing HSAs.
Step by Step: How HSAs Work
- Application / Enrollment: An individual applies for an HSA-compatible HDHP. Or, an employer offers their employees the option of enrolling in an HSA-compatible HDHP. The individual or employee is enrolled in the HDHP.
- Open HSA: The individual or employee opens an HSA at Columbia River Bank
- Contributions: The individual, employer and/or the employee make contributions up to an annual maximum. See question 10 in the Q & A for details. Employee contributions are tax-deductible on their annual return and employer contributions are exempt from federal employment taxes (e.g., income, FICA, FUTA).
- Pay for expenses: The individual or employee withdraws money from the account to pay for qualified medical expenses, such as plan deductibles and necessary medical services not covered by the plan.
- Unused balances: At the end of the year, unused HSA funds roll over to the following year. In the event that an employee or individual terminates HDHP coverage, the HSA is theirs to own and take with them. Contributions to the HSA are not permitted when there is no qualified HDHP coverage, however funds can still be withdrawn from the HSA tax-free for qualified expenses.
We can also help you find the right high-deductible health insurance plan through one of our insurance partners. Let Us Be Your HSA Expert Partner. For more information about HSA eligibility, account set up and management, or about Columbia River Bank HSA, please call our HSA experts at 877-248-7098.
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