A health savings account (HSA) is a tax-advantaged savings account used to save and pay for qualified medical expenses. HSAs work in conjunction with a High Deductible Health Plan (HDHP) to offer the following benefits:
Tax-free distributions for qualified medical expenses
Unused HSA funds can remain in the HSA year after year
HSA funds can be used to pay for the qualified medical expenses of the account owner, his or her spouse, and dependents
Eligibility To make contributions to an HSA, the account owner must meet all of the following requirements:
Is covered under a High Deductible Health Plan (HDHP)2
Is not covered by any other major medical health plan that is not a HDHP
Is not enrolled in Medicare
Cannot be claimed as a dependent on another person’s tax return
Availability of Funds Withdrawals are tax free if the funds are used exclusively for paying or reimbursing qualified medical expenses. Qualified expenses are those incurred after the account is opened. Some examples of qualified expenses include doctor visits, prescription drugs, and dental care visits for the account owner, his or her spouse and dependents. Refer to IRS publications 969 and 502 for more information and a complete list of qualified medical expenses.
Contributions Contributions for the current year can be made until April 15th of the following year. The maximum contribution limits, which are based on the type of coverage, are as follows:
Eligible individuals who are age 55 or older can contribute an additional $1,000 to their HSAs. Contribution limits are indexed for inflation and can change annually.
Current Interest Rate is o.60% / 0.60% APY1
No minimum balance required to open
Dividends compounded daily and paid monthly
Special HSA debit card for purchases and ATM usage
Accessible via ATM, Press For Info, Press Pass, all SECU branch locations and our 24/7 Member Services
Eligible for BillPay transactions
Rollovers All or any portion of funds withdrawn from an HSA or Archer MSA can be deposited back to an HSA as a rollover contribution according to the following rules. Rollovers are not subject to the annual contribution limits; however, owners can make only one rollover within a 12-month period. To qualify as a rollover and avoid a tax penalty, withdrawn funds must be re-deposited within 60 calendar days.
Transfers All or any portions of the funds in an HSA or Archer MSA can be transferred directly to another HSA tax free. Transfers are made from custodian to custodian. Because the account owner never has the funds in his or her possession, an unlimited number of transfers are allowed without a tax penalty.
You can apply for a health savings account online via Press Pass.
1Quoted rates and annual percentage yields (APY) are subject to change daily.
2An HDHP is a medical insurance plan with an annual minimum deductible for individual/family coverage and a maximum out-of-pocket cap for each type of coverage. The deductible and out-of-pocket cap are subject to change each year. You must meet your deductible before the insurance policy provides coverage except for preventative care. Disclaimer: Our intent is for this information to be correct and accurate; however, the information is provided “as is” without warranty of any kind, either expressed or implied.
*Quoted rates, dividends, annual percentage yields (APY) and annual percentage rates (APR) are subject to change daily at the discretion of the Board of Directors.
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