Colorado business bank - Citywide Banks
click here to access your online banking account
Quick Links Menu

Member FDIC and Equal Housing Lender
Business Visa Debit Card - Citywide Banks

Health Savings Accounts for Colorado Families

remote depositView complete list of personal checking and savings accounts
A Health Savings Account (HSA) is designed for tax-deductible funds to pay qualified medical expenses for individuals enrolled in a high-deductible health insurance plan.

Are you self-employed or a small business owner? business checkingLearn how an HSA can benefit your business.

Features of Personal Health Savings Accounts
  • No monthly balance service fee with a minimum daily balance of $1,000.00
  • $3.00 monthly balance service fee if minimum daily balance falls below $1,000.00
  • Interest earned on daily balances for days when balance is $100.00 or more
  • Debit Card with no annual fee

Tax Advantages from Health Savings Accounts
HSAs can provide significant tax benefits to eligible individuals.  Not only can HSAs provide tax benefits related to paying qualified medical expenses, they may also provide benefits similar to many tax-favored retirement plans.  A summary of HSA tax advantages is shown below.

  • HSA contributions - by employer or employee - are excluded from income.
  • HSA earnings are tax deferred.
  • If used for qualified medical expenses, HSA assets are never taxed.
  • Unused HSA assets may be used for retirement; however, they will be subject to a 10 percent penalty until the HSA account beneficiary turns age 65.  If not used for medical expenses, they will be subject to income taxes.

Upon death, HSA assets become the property of a named death beneficiary, or of the HSA account beneficiary's estate.  A spouse may treat the assets as his or her own HSA, while nonspouse death beneficiaries must treat such assets as ordinary taxable income.