Health Savings Account (HSA)

Whether you're a sole proprietor with no employees or a corporate entity offering healthcare benefits to workers, you'll want to consider the advantages of a Health Savings Account.  HSAs are definitely growing in popularity.  Due to an IRS requirement, you'll need to have a qualified High Deductible Health Plan in place before you can take advantage of this account. 

For the Individual Business Owner
(with no employee healthcare needs): 

HSAs are a good way to take control of your own individual healthcare spending. Its tax saving features makes it an attractive choice.

• Contributions into the account are tax-deductible provided you follow IRS guidelines*
• Interest earned on an HSA is tax-free
• Withdrawals for qualified medical expenses are tax-exempt
• Unlike some other healthcare accounts, you'll never lose your funds if you don't use them.  With an HSA, your funds are rolled over and kept in your account from year to year.
• Portability allows you to keep your funds even if you change health plans.  The account belongs to you.
• Tiered interest rates earn you higher rates for higher balances. As your balance grows, you'll earn more money on your HSA. 
• Easy access to your funds by MasterCard ATM/Debit Card**, electronic transfer or in-bank withdrawals
• Check with a Minnwest representative who can update you on the current federal limits of annual contributions to an HSA
• $100 to open account with automatic deposit available

*Consult your tax advisor or insurance provider regarding health plan eligibility and tax advice.

**qualifications apply

For the Business who offers Healthcare Benefits to Employees:

We've been told by business owners like you and their employees that Minnwest's HSA is one of the best around!  If you are offering a High Deductible Health Plan (HDHP), you must consider Minnwest's HSA. 

• Reduce your healthcare spending because
  • HDHP may offer reduced premiums for your business
  • You share the cost of healthcare with your employees in a plan that benefits you and them . . . a combination HDHP and Minnwest HSA
• Puts healthcare spending funds into your employees' hands
• Lets employee decide how to spend the funds on qualified healthcare expenses
• Minimal employer administration of HSA since employee handles their own HSA 
• Enhances your benefits package by offering employees portability, flexibility and even tax savings with HSAs
• You can allow employees to fully fund their HSAs or you can choose to make an employer contribution to it
• Potential tax savings on your Social Security and Medicare taxes by offering pretax payroll HSA deduction for employees**
• Ask a Minnwest business banker for all the details

**Depends on business structure. Employers should consult with tax advisor regarding their situation.