Health Savings Accounts
The Smart Solution for Healthcare Spending
Use your HSA to pay for qualified medical expenses – tax free!
HRCU is proud to be the only local credit union to offer members the benefits of Health Savings Accounts (HSA). With no opening or monthly fees, and a high yielding dividend rate that pays at least twice that of other local financial institutions offering HSAs, HRCU is the clear choice when it comes to savings for those unexpected medical expenses.*
What is an HSA? What can I use it for?
An HSA is a specialized, interest-earning account that allows you to save in advance for qualified out-of-pocket medical expenses such as:
- Doctor’s visits
- Acupuncturists and more!
Hassle-Free Medical Payments
Using an HSA has never been easier. You will have all of the purchasing power and protection of a Visa HSA Debit Card, or you can use traditional checks. They work just the way regular cards and checks do for co-pays, prescriptions, and more. Even better, all HSA funds used count towards meeting your annual health insurance deductibles.
The Tax-Free HSA!
Not all medical savings plans are created equally! HSAs enable you to pay and save for qualified medical procedures TAX-FREE! All HSA contributions (up to the yearly limit) are tax deductible. Any interest earned is also tax-free if used to pay for qualifying health expenses.**
Save Today, For Tomorrow
Best of all, unused HSA funds are not forfeited at the end of the year! With the ability to roll them over, you avoid the use-it-or-lose-it penalties of other plans. HSA owners 55 and older can even contribute an extra $1,000 per year over regular annual limits to further build that nest egg for healthcare expenses that may be encountered during retirement. And, you’re always building interest!
*To be eligible for HSA, owner must have a qualified, high deductible health insurance plan. **Funds withdrawn for non-qualified expenses will be taxed at your income-tax rate, plus a 20% tax penalty if under the age of 65.
The Internal Revenue Service (IRS) states that a negative balance in your HSA account is prohibited by federal law. This means that you cannot have any transaction, fee or charge that causes your HSA account to have a negative balance. It is extremely important that you do not overdraw your HSA account.
We encourage you to set up an account balance alert on your HSA account to help effectively manage your account and avoid a negative balance. By opening an HRCU HSA, you agree to immediately deposit sufficient funds to eliminate any negative balance should that situation occur, and also authorize HRCU to transfer funds from any other HRCU account in which you have an interest, to create a non-negative balance in the HSA checking account.
If you do not correct a negative account balance immediately, The IRS will consider your account in a prohibited state and by law HRCU must close your account. According to the Internal Revenue Code, if an HSA account results in a negative balance, the HSA will cease to be an HSA on the first day of the year in which the prohibited transaction occurred, thus becoming taxable.
Health Savings Account
Effective Date: Monday, August 20, 2018
|Health Savings Account||$0 - $2,499||1.00%||1.00%|
|$2,500 - $9,999||1.49%||1.50%|
*Annual Percentage Yield. All Dividends are based on the Average Daily Balance and are paid monthly. All rates are variable and subject to change without notice. To be eligible for HSA, owner must have a qualified, high deductible health insurance plan. Funds withdrawn for non-qualified expenses will be taxed at your income-tax rate, plus a 20% tax penalty if under the age of 65.
Deposits are fully insured up to $500,000; to at least $250,000 by the NCUA and $250,000 by Excess Share Insurance. IRA deposits are fully insured up to $500,000; $250,000 by the NCUA and $250,000 by Excess Share Insurance. Maintenance or activity fees could reduce the earnings on the account.
How to open an HSA account
You can open your HSA by stopping by any of our branches, e-mailing us or calling us.
newaccount at hrcu dot org
When contacting us via e-mail, please provide your name and best method for contacting you along with the type of account or loan you are interested in opening or applying for. For your protection, please do not include any personal identification information (i.e. Social Security Number, etc.) in your e-mail. Thank you, we look forward to hearing from you soon!