A Health Savings Account (HSA) is a tax-deductible savings
account with tax-free withdrawals for qualified medical expenses.
Features
Current interest rate is % / % APY1
No minimum balance required to open
Dividends compounded daily, paid monthly
Monthly statement
Special HSA debit card for purchases and ATM usage
Accessible via ATM, ASK SECU, Member Access, branch and SECU Call Center
Eligibility
To make contributions to an HSA the account owner must meet all of the
following requirements:
Must be covered under a High Deductible Health Plan (HDHP)2
Is not covered by any other health plan that is not a HDHP
Is not enrolled in Medicare
Cannot be claimed as a dependent on another person's tax return
Is less than 65 years old. Individuals may not make regular contributions to an
HSA in or after the tax year they reach age 65.
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. These include doctor visits, prescription drugs,
and over-the-counter medicines for the owner, his or her spouse and dependents.
Contributions
Contributions for the current year can be made until April 15th of the
following year. The maximum contribution limits are listed below.
Year
Single Coverage
Family Coverage
Catch-up Provision for 55 or over
2007
$2,850
$5,650
$800
2008
$2,900
$5,800
$900
Rollovers
Rollover contributions can be made to an HSA from another HSA or from an Archer
MSA. 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rollover and avoid a tax penalty, all funds withdrawn must be re-deposited
within 60 calendar days.
Transfers
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. A portion or all of the funds from one HSA or an
Archer MSA can be transferred to another HSA tax-free.
You can apply for a Health Savings Account online via Member Access.
1 Quoted rates and annual percentage yields (APY) are subject to change daily.
2 An 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.
