A Health Savings Account (HSA) gives you more control over your healthcare expenses. Health Savings Accounts are combined with an HSA-compatible high deductible health plan to offer a more affordable approach to healthcare. The health plans typically provide lower premiums and the HSA provides tax benefits when contributions are made, as funds grow and when used to pay for qualified medical expenses. Lower insurance premiums combined with using tax-free money can lead to significant savings.
| What It Is | A special savings allowing you to save money to pay for qualified medical expenses for yourself and your dependants | |
| What It Does | Allows you to earn tax-free dividends while they are saving up money for medical-related costs | |
| Who Is Eligible | Anyone who • is not enrolled in Medicare • cannot be claimed as a dependant by someone else and • is covered by a High Deductible Health Plan (HDHP) -Member needs to ask their insurance provider if their insurance coverage is HSA compatible |
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| Opening Deposit | $0.00 | |
| Minimum Balance to Earn Interest (APY) |
$.01 | |
| Annual Service Fee | $10.00 Automatically w/d from the HSA on the yearly anniversary date of opening the account |
|
| Dividends Paid | YES Monthly |
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| Tiered Rate |
YES $0.00 – $2,499.99 $2,500.00 – $9,999.99 $10,000.00 – $24,999.99 $25,000.00 – $49,999.99 $50,000.00 + |
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| How often can APY change? | Monthly | |
| Dormant Fee | NO | |
| Balance Method | Daily – meaning dividends are calculated by applying a rate to the balance in the account each day. | |
| Debit Card Allowed |
YES |
|
| Closing Fee | $50.00 -Only if the account is closed within 365 days of opening -If closed within seven days of opening, no fee applies |
|
| Contribution Limits | YES – (see tables below) - Separate limits exist for Single or Family coverage - Catch-up contributions can be made by members age 55 or older - All limits are revised each year and therefore are subject to change |
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| Limit on Withdrawals or Transfers |
NO If w/d is for qualified medical expenses as defined below: Doctor visits, Dentist visits, Prescriptions, Transportation to receive medical or dental care, Healthcare coverage if you are receiving federal or state unemployment compensation, Long-term Care Insurance, etc. Any funds not used for medical expenses are subject to taxation and a 10% penalty. |
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| Withdrawal Fee | $2.00 Charge ONLY if funds are w/d in a credit union check below $3,000.00 |
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| Special Characteristics | •First pack of 50 checks are free; member is responsible for any additional checks •Member is responsible for keeping all receipts, keeping track of their contributions, etc… for tax purposes •Can only be opened under personal accounts •Primary insured person must be the primary member on the account •Funds roll over from year to year •Cannot use Flex dollars to pay for covered medical expenses if you have an HSA • For NCUA purposes, an HSA is not considered the same as an IRA. (HSA balances are added onto any other individual accounts of the owner and are insured up to $250,000.) •All rules concerning beneficiaries are the same as with any other share account. |
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CONTRIBUTION LIMITS
| Tax Year |
Single Coverage HDHP |
Family Coverage HDHP |
||
| Minimum Deductible |
Maximum Out-of-Pocket |
Minimum Deductible |
Maximum Out-of-Pocket |
|
| 2009 |
$1,150 |
$5,800 |
$2,300 |
$11,600 |
| 2010 |
$1,200 |
$5,950 |
$2,400 |
$11,900 |
| Tax Year |
Single Coverage |
Family Coverage |
Over 55 Catch-Up |
| 2009 | $3,000 ($250) |
$5,950 ($495.83) |
$1,000 ($83.33) |
| 2010 |
$3,050 ($254.17) |
$6,150 ($512.50) |
$1,000 ($83.33) |
