Frequently Asked Questions

What kinds of distributions are made with the HSA debit card?
The HSA debit card can be used only for signature-based point of sale transactions. Cash withdrawals are not allowed at ATMs. A Personal Identification Number (PIN) is not issued with the HSA debit card. Brazos Valley Bank will restrict the types of merchants where the cards can be used. These merchant categories will include all medical facilities such as hospitals, doctor’s offices, pharmacies, medical warehouses, etc. If the card is used at a merchant that does not qualify the transaction will be denied. Brazos Valley Bank assumes no liability for transactions made on the HSA debit card. Receipts for all transactions made with an HSA debit card must be kept for tax purposes to prove the validity of the sale.

How is the HSA debit card activated?
Because no PIN is generated and the cardholder cannot access funds via an ATM, no activation is required.

Can deposits (contributions) be made with the HSA debit card at an ATM?
No. Contributions on your HSA must be made in cash inside a Brazos Valley Bank lobby or via direct deposit from your employer.

Contribution Deadline:
HSA contributions must be made by the eligible individual’s tax return due dates for the year, not including extensions (April 15th). This same deadline applies regardless of who makes the contribution.

Enrollment in Medicare:
There is no specific age restriction for HSA contribution eligibility. Contributions, however, cannot be made beginning with the month the eligible individual enrolls in Medicare. Internal Revenue Code states that an individual who is “entitled to benefits under” Medicare ceases to be an HSA-eligible individual starting with the month he/she is entitled to benefits.

Qualified Medical Expenses:
Qualified medical expenses are medical expenses that are 1) incurred on behalf of the HSA owner, his spouse, or dependents, 2) incurred after an HSA has been established, 3) not covered by insurance, and 4) paid by the HSA owner, his spouse, or dependents.

Qualified medical expenses are expenses that would generally qualify for the medical and dental expense tax deduction, including amounts paid for doctor’s fees, prescriptions, and certain dental and vision care. IRS Publication 502, Medical and Dental Expenses, contains a partial listing of qualified medical expenses. Examples of qualified medical expenses include expenses for

• Diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or function of the body;
• Transportation for the essential medical care listed above;
• Qualified long-term care services;
• Premiums for qualified long-term care services;
• Premiums for qualified long-term care insurance, COBRA health care continuation coverage, health care coverage while an individual is receiving unemployment compensation;
• For individuals over age 65, premiums for Medicare Part A or B, Medicare HMO, and the employee share of premiums for certain employer-sponsored health insurance (including premiums for employer-sponsored retiree health insurance);
• Certain amounts paid for lodging while away from home that is essential to medical care; and
• Non prescription drugs as described in Re. Rul. 2003-102.

Frequently Asked Questions

What kinds of distributions are made with the HSA debit card?
The HSA debit card can be used only for signature-based point of sale transactions. Cash withdrawals are not allowed at ATMs. A Personal Identification Number (PIN) is not issued with the HSA debit card. Brazos Valley Bank will restrict the types of merchants where the cards can be used. These merchant categories will include all medical facilities such as hospitals, doctor’s offices, pharmacies, medical warehouses, etc. If the card is used at a merchant that does not qualify the transaction will be denied. Brazos Valley Bank assumes no liability for transactions made on the HSA debit card. Receipts for all transactions made with an HSA debit card must be kept for tax purposes to prove the validity of the sale.

How is the HSA debit card activated?
Because no PIN is generated and the cardholder cannot access funds via an ATM, no activation is required.

Can deposits (contributions) be made with the HSA debit card at an ATM?
No. Contributions on your HSA must be made in cash inside a Brazos Valley Bank lobby or via direct deposit from your employer.

Contribution Deadline:
HSA contributions must be made by the eligible individual’s tax return due dates for the year, not including extensions (April 15th). This same deadline applies regardless of who makes the contribution.

Enrollment in Medicare:
There is no specific age restriction for HSA contribution eligibility. Contributions, however, cannot be made beginning with the month the eligible individual enrolls in Medicare. Internal Revenue Code states that an individual who is “entitled to benefits under” Medicare ceases to be an HSA-eligible individual starting with the month he/she is entitled to benefits.

Qualified Medical Expenses:
Qualified medical expenses are medical expenses that are 1) incurred on behalf of the HSA owner, his spouse, or dependents, 2) incurred after an HSA has been established, 3) not covered by insurance, and 4) paid by the HSA owner, his spouse, or dependents.

Qualified medical expenses are expenses that would generally qualify for the medical and dental expense tax deduction, including amounts paid for doctor’s fees, prescriptions, and certain dental and vision care. IRS Publication 502, Medical and Dental Expenses, contains a partial listing of qualified medical expenses. Examples of qualified medical expenses include expenses for

• Diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or function of the body;
• Transportation for the essential medical care listed above;
• Qualified long-term care services;
• Premiums for qualified long-term care services;
• Premiums for qualified long-term care insurance, COBRA health care continuation coverage, health care coverage while an individual is receiving unemployment compensation;
• For individuals over age 65, premiums for Medicare Part A or B, Medicare HMO, and the employee share of premiums for certain employer-sponsored health insurance (including premiums for employer-sponsored retiree health insurance);
• Certain amounts paid for lodging while away from home that is essential to medical care; and
• Non prescription drugs as described in Re. Rul. 2003-102.