Skip to content

Free Gift to Customers w/Health Savings Account

Question: 
Can you give a free gift valued over $25 to customers with a Health Savings Account? The account is coded as a checking account.
Answer: 

Answer by John Burnett: If the gift is given for the opening of the HSA account, it will be considered interest under FDIC deposit insurance regulations. Given the dollar amounts in HSA accounts, it's very unlikely that the depositor will be upset that the account would not be qualified for unlimited deposit insurance coverage, but that fact should be pointed out to the customer.

IRS regulations would also require that this gift be reported as interest, if given for the opening of the account.

Answer: 

Answer by Randy Carey: John, but an HSA is a tax deferred investment, so there would really be no IRS reporting on the HSA account. I concur that if the gift was given directly to the customer and not credited to the HSA account, then it would require interest reporting. The question that I would have is, is it allowable under the IRS regulations? That I don't know.

First published on BankersOnline.com 7/9/12

First published on 07/09/2012

Filed under: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics