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Health Savings Account

Individuals and businesses alike understand the need to proactively manage two of their most pressing costs – health care expenses and tax liability. A MidWestOne Bank Health Savings Account (HSA) may be the solution for you.  A tax advantaged FDIC-insured account, an HSA is an attractive option for consumers who subscribe to a High Deductible Health Plan (HDHP) and for employers who offer these plans.

A Health Savings Account, or HSA, can help you pay for qualified medical expenses and combat increases in health insurance costs. There are tax advantages, and contributions may be made by you, your employer, or anyone else, up to your maximum contribution limit. Watch this video to learn more about how an HSA works.

HSA Benefits:

  • Account ownership - Funds are portable in the case of a change in employers.
  • Security - Your high deductible health plan and HSA protect you against high or unexpected medical bills.
  • Flexibility in funding - Contributions may be made by the employer, the employee, or any other person or nonperson (charity, etc.) up to your maximum contribution limit.
  • Tax-free savings - Unused funds can roll over into the next plan year or be saved for retirement.
  • Tax deductible contributions - Contributions to your HSA (that are not from your employer) are tax deductible.*
  • Tax-free earnings - Interest earned on the account will accrue tax-free within the HSA.*
  • Tax-free withdrawals - Funds used for qualified medical expenses will not be taxed upon withdrawal.*
  • Catch up contributions - If you are age 55 or older you can make additional catch up contributions.

*Subject to IRS requirements.  Consult your tax advisor for more information.

How does the account work?

After opening an account, you and your employer can both make contributions to the HSA. Contributions can also be made on behalf of an individual, such as a family member, as long as the individual meets the HSA qualifications. When a qualified medical payment is due, you can pay for it with the accumulated funds in your HSA account. Use your HSA MasterCard® Debit Card or write a check from your account. You must maintain proof of the qualified medical expense.  You can choose to not use your HSA account for qualified medical expenses and watch the balance grow for future needs.

How do I access my account funds?

We offer unrestricted access to your account. That means you can utilize your HSA MasterCard® Debit Card, withdraw funds in person at a MidWestOne Bank location or any ATM, write checks from your account, or utilize our online bill pay service.


  • HSA funds used for non-qualified medical expenses will be assessed a 20% tax penalty and will also be taxed as regular income.
  • Funds withdrawn after age 65 (or if you become disabled) are exempt from the 20% tax penalty - however, the funds will be subject to income tax if not used for qualified medical expenses.

To open an HSA, you must meet the following criteria:

  • Be currently enrolled in a qualifying High Deductible Health Plan (HDHP).
  • Cannot be enrolled in Medicare.
  • Cannot be claimed as a dependent on someone else’s tax return.
  • Cannot be covered under your own or spouse’s employer sponsored health care plan that is not a qualified HDHP.

What are the qualifications and fees?

There is no minimum balance required to open the account.  External Transfer Fee - $25.00; Closure of Account within 6 months of opening - $25.00; Transaction Adjustment  - $25.00; Monthly Paper Statement Fee - $3.00.  Online Secure eStatements - FREE.  Online Banking - FREE.  Online Bill Pay - FREE.  HSA MasterCard Debit Card - No issuance fee.  The account can be opened online or at any MidWestOne Bank location.  See our Schedule of Fees for a complete list of possible fees.



“Friendly, knowledgeable staff. Knows my name when coming into bank and ask about my family by name.”  

Lisa S. — Conrad, IA customer