Health Savings Accounts
Health Savings Accounts (HSA) are individually-owned accounts which allow you to make tax-deductible contributions, accumulate earnings on a tax-deferred basis, and withdraw money tax free to pay for qualified medical expenses.
HSAs are designed for individuals who have chosen a high deductible health plan. Funds in an HSA can be used to pay for qualified medical expenses until the deductible has been met and insurance kicks in. For general information about HSA's visit our Q&A's.
|Minimum Balance||Certificates $500|
|Monthly Service Charge||None|
|Terms||Up to 60 months for HSA Certificates|
|Contributions||Contributions for any tax year may be made at any time before the deadline for filing your federal income tax return for that year (without extensions).
It is your responsibility to determine whether contributions to your HSA have exceeded the maximum annual contribution limit.
Since 2007, HSA contributions are no longer limited to the amount of the deductible of the High Deductible Health Plan (HDHP) and are instead tied to just the annual contribution limit for your type of health plan.
For 2019 & 2018 an additional $1,000 catch-up contribution can be made if you are at least age 55 or older and are not enrolled in Medicare.
|Distributions||Distributions of funds from a HSA may be made at your request. You are responsible for substantiating that the distribution is for qualified medical expenses and must maintain records sufficient to show, if required, that the distribution is tax-free.|
|Withdrawal Penalty||Distributions that are not used for qualified medical expenses are included in your gross income and are subject to an additional 10% tax on that amount. There is an early withdrawal penalty on a HSA certificate.|
|Share HSA Dividend Rate|| .10% APY†
Dividends are compounded and paid monthly based on the average daily balance. The dividend rate and APY may change every dividend period as determined by the Board of Directors.
|Certificate HSA Dividend Rates||
Dividends are compounded and paid monthly based on the average daily balance.
|Automatic Deposits||You may have money deposited into your account with automatic transfer or payroll deduction.|
|Statements||Issued Quarterly by
|ASI Insured||Funds are insured up to $250,000 per account. By member choice, this institution is not federally insured. Click here for more information regarding ASI.|
†APY = Annual Percentage Yield