Health Savings Account Tips, Info & FAQs
A tax-free savings account used with a high-deductible health insurance policy
If you have a high deductible health plan (HDHP), you’re likely to qualify for a health savings account (HSA). An HSA lets you set aside part of your income before taxes specifically to pay future medical bills. It’s a great alternative method of covering healthcare costs.
3 Things to Know about HSAs
1. What is an HSA?
An HSA is a health savings account designed to help people with high deductible health plans (HDHP) pay their medical bills. You can deposit money into it tax-free, and then spend that money on health-related expenses.
2. How does an HSA work?
Contributions to the account can be made by you or your employer. These contributions are made on pre-tax income. You can then use the funds at any time to cover insurance co-pays, doctors visits, prescriptions, etc.
3. What are the benefits?
Even if you don’t expect to have medical expenses this year, an HSA can still be a great idea. That’s because as soon as you open one, you’re allowed to use tax-free money to cover your healthcare costs. The funds roll over year to year, even if you leave your current job or switch to another insurance plan.
Does the Health Saving Account have a debit card?
Yes. You’ll receive an Instant Issue debit card that you can use immediately for healthcare expenses.
What are the contribution limits?
These are the 2017 Annual Contribution Limits:
- Individuals = $3,400
- Families = $6,750
- Individuals 55 and over = $1,000 additional catch-up contribution
Do I have to use all of the funds each year?
No, the funds can accumulate and be used as needed for qualified medical expenses. There is no “use it or lose it” rule, unlike a Flexible Spending Account.
Is my contribution considered to be "pre-tax" if I make the contributions, and not my employer?
Please consult your tax professional for advice on this question.
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Health Savings Account Rates & Calculator
Health Savings Account
|Balance $5 - $4,999.99||
|Balance $5,000 and Over||
*APY = Annual Percentage Yield. APY is accurate as of August 1, 2017 and may change after the account is opened. Dividends are based on the daily balance and paid to the account monthly, Fees or other conditions could reduce the earnings on the account.
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Health Savings Account Why United Texas
- Deposit money tax-free
- Includes an instant issue debit card
- Perfect for anyone with a HDHP
- Free transfers to savings and checking
- Annual contribution limits apply
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Health Savings Account How it Works
Opening an HSA account with us is fast and simple.
Give us a call, contact us online, or come into any one of our branches.
Join United Texas Credit Union. All you need to do to become a member is to open a $5.00 minimum savings account.
Apply for an HSA with us. You’ll need to meet the following requirements in order to be eligible:
- A qualified high deductible health insurance plan (HDHP)
- No other major medical coverage
- Not enrolled in Medicare
- Not claimed as anyone’s dependent
Make a $5.00 minimum deposit into your HSA.
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2017 Annual Contribution Limits:
Individuals = $3,400
Families = $6,750
Individuals 55 and over = $1,000 additional catch-up contribution