Health Savings Accounts (HSA)
A Health Savings Account (HSA) is a tax-deductible savings account with tax-free withdrawals* for qualified medical expenses. Since there is no “use it or lose it” requirement, your unused HSA dollars can accumulate tax deferred to pay for future health care costs. Also, funds deposited into the account belong to you so they stay with you when you change employers. This account is used to pay for qualified medical expenses.
*Ask your Employer or Health Insurance Company if your health insurance plan makes you eligible to open and make contributions to a HSA.
Your HSA (Health Savings Account) will be deposited in an account at Premier Members CU. You will receive a monthly account statement, which details all deposits and withdrawals. Your account balances are insured up to the limits imposed by the NCUA.
- No minimum balance to open & no monthly fees (Credit Union Membership Required)
- A free HSA Visa Debit Card – for easy access to funds
- Tax-free withdrawals** for qualified medical expenses
To open and make contributions to a HSA, you must meet all of the following requirements:
- You must be covered under a High Deductible Health Plan (HDHP)
- You cannot be covered by any other health plan that is not a HDHP
- You are not enrolled in Medicare
- You are not claimed as a dependent on another person’s tax return
- You are younger than 65 years old (If you are 65 or over and choose to continue working, but are not enrolled in Medicare you are still eligible)
To confirm your eligibility, check with your Employer, Health Insurance Provider, or the US Treasury’s website on Health Savings Accounts located at https://www.treasury.gov/resource-center/faqs/Taxes/Pages/Health-Savings-Accounts.aspx.
How Do I Access Funds?
Access to the account is via Visa Debit Card or through cash withdrawals at one of our Premier Members CU branch locations. Access to the account is NOT available via ATM cash withdrawals.
Visa Debit Card
Upon opening your HSA, you will receive a Debit Card in 7 to 10 business days for accessing the account. Your Visa Debit Card can be used to make qualified healthcare purchases anywhere Visa is accepted. Purchases will be automatically deducted from your HSA tax-free.
Account Balances and Information
Obtain account balances for your HSA and other Premier Members CU accounts anytime day or night via Online Banking or TellerPhone Account Access (1.877.417.1825).
Frequently Asked Questions
What is a Health Savings Account (“HSA”)?
“A Health Savings Account allows individuals to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax free** basis.”
Who is eligible for a Health Savings Account?
“To be eligible for a Health Saving Account, an individual must be covered by a High Deductible Health Plan (HDHP), must not be covered by other health insurance (does not apply to specific injury insurance and accident, disability, dental care, vision care, long-term care), is not enrolled in Medicare, and can’t be claimed as a dependent on someone else’s tax return.“
What is a “High Deductible Health Plan” (HDHP)?
“A HDHP is a health insurance plan with minimum deductible of $1,400 (self-only coverage) or $2,800 (family coverage). The annual out-of-pocket (including deductibles and co-pays) cannot exceed $7,000 (self-only coverage) or $14,000 (family coverage). HDHPs can have first dollar coverage (no deductible) for preventive care and higher out-of-pocket (copays & coinsurance) for non-network services”
Who can contribute to a Health Savings Account?
“Annual contribution limits can be viewed on the “ Internal Revenue Service website.
Do Health Savings Account funds roll over year after year and get invested?
“Yes, the money invested in a Health Savings Account rolls over year after year.”
Who has control over the money invested in a Health Savings Account?
In most cases the individual will have control over the assets.
**Premier Members Credit Union is not a tax advisor and encourages members to seek tax advice from a licensed professional.