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Tax Smart Healthcare Savings
Westmark's Medical Savings Account (MSA) assists you in sheltering a portion of your gross income from Idaho State Income Taxes while saving for future eligible medical expenses.
Who Can Open an MSA?
Any member with taxable income may open a Westmark Medical Savings Account. If you are married and file a joint Idaho State Income Tax Return, you may open a joint account. All MSAs are individual or joint accounts with a designated beneficiary.
How to Access Your Funds
Multiple convenient ways to use your Medical Savings Account.
MSA Debit Card
Use your Medical Savings Account debit card to pay for eligible expenses directly.
At a Teller Window
Withdraw funds directly at any Westmark branch location.
Online Transfer
Transfer funds to your checking account with Online Banking or Phone Banking.
Free Checks
Use free checks available exclusively for your Westmark MSA (limit one book per quarter).
Direct Transfers
You may make a "direct transfer" from an MSA at another financial institution to your Westmark MSA, without penalty. Ask a Financial Service Representative for assistance.
Eligible Medical Expenses
Only eligible medical expenses incurred after your contributions are exempt from Idaho State Income Tax.
You must retain records of any medical services received, the date of services, and evidence of payment.
Contribution Limits & Tax Information
Important details about contributions, withdrawals, and tax reporting.
Contribution Limits
- Individual: Up to $10,000 per calendar year
- Married (joint filing): Up to $20,000 per calendar year
Withdrawal Rules
Withdrawals for eligible medical expenses are not subject to Idaho State Income Tax.
Funds withdrawn for non-medical expenses are taxable. If you are under 59½, non-medical withdrawals are also subject to a 10% penalty.
Tax Reporting Responsibilities
- Westmark will report the dividends earned on your MSA to the Idaho State Tax Commission.
- For joint accounts, information will be reported under the Primary Member's name and Social Security Number.
- You are responsible for maintaining records of all deposits and withdrawals from your MSA.
- You must declare penalties for withdrawals made for non-medical expenditures when filing your Idaho State Income Tax Return.
- Deposits in excess of your tax deductible contributions may be carried forward as unexpended funds for the following year(s).
Related Savings Options
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Term Certificates
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Questions About Medical Savings Accounts?
Our Financial Service Representatives can answer any questions you may have about eligibility, contributions, or tax implications. Contact us or visit any branch to open your MSA today.