- Health Savings Account (HSA)
- What are the benefits of a Health Savings Account (HSA)?
A few benefits of a Health Savings Account are:
- HSA earnings are tax-deferred or tax free when used for qualified medical expenses
- HSAs may be used to pay qualified medical expenses with pre-tax dollars
- HSA balances are carried over year-to-year
- Starting at age 65 unused HSA funds may be used as taxable retirement income
- Upon death, HSA assets become property of the beneficiary (A spouse may treat the assets as his/her own HSA. For a non-spouse beneficiary, inherited HSA assets are treated as ordinary taxable income.)
Who is eligible to participate to a Health Savings Account (HSA)?
Members must have their own primary accounts to open an HSA at Delta Community Credit Union
No joint owners are allowed on HSA accounts, but they may have beneficiaries
Must be covered by a high deductible health plan (HDHP) on the first day of the month (Eligibility is determined on a monthly basis.)
May not be covered by any health plan that is not a HDHP
May not be enrolled in Medicare
May not be claimed as a dependent on another person's tax return
Is a minimum $5.00 required to open a Health Savings Account?
Yes, but it's not required if you are funding by transfer.
What are the contributions limits for HSAs?
HSA Annual Contribution Limit for 2013:
Single Coverage $3,250.00
Family Coverage $6,450.00
HSA Annual Contribution Limit for 2014:
Single Coverage $3,300.00
Family Coverage $6,550.00
HSA Catch-up Contribution: The year the member turns 55 and continuing until he/she is enrolled in Medicare.
The catch-up contribution for the year.
For more information, visit the IRS website.
How can I make a contribution to my HSA?
A contribution can be made to an HSA online, in person or through the mail. A deposit slip for your HSA can be obtained online by clicking here. The form must be completed and signed and must indicate the tax year for which the contribution is being made. For your convenience, the address, fax, and phone number are on the form. It may be mailed or faxed to the attention of the Personal Deposit Services Department.
Contributions may be made through your online banking record. Contributions may be made for the current year or the previous year. Previous year contributions must be made prior to the tax return deadline for that year.
How can I access my HSA funds?
Withdrawals from an HSA account can be done using different methods including:
- Debit Cards
- In branch withdrawal
NOTE: Online transfers from an HSA cannot be done at this time.
ACH to/from HSA Account - Code as Checking Account
If you request to deposit/withdraw electronically (ACH) from your Health Savings Account, you will need to advise the company or financial institution to code it as a Checking Account and not as a Savings Account. This is due to HSA Accounts having check writing capabilities.
What happens to the money in my HSA if I lose my HDHP (High Deductible Health Plan) coverage?
When coverage under a HDHP is lost, funds deposited into your HSA remain in your account and automatically roll over from one year to the next. You may continue to use the HSA funds for qualified medical expenses. You are no longer eligible to contribute to an HSA for months that you are not an eligible individual because you are not covered by an HDHP.
If you are covered by an HDHP for less than a year, the annual maximum contribution is reduced. If you made a contribution to your HSA for the year based on a full year's coverage by the HDHP and do not have HDHP coverage for a full year, you will need to withdraw some of the contribution to avoid the tax on excess HSA contributions. If you regain HDHP coverage at a later date, you can begin making contributions to your HSA again.
What are qualified medical expenses for Health Savings Accounts (HSAs)?
Qualified medical expenses for HSAs include:
- Actual medical expenses including doctor visits, prescriptions, transportation to get medical and dental care
- Long term care services
- Health coverage when unemployed
- Certain continuation of benefit health care coverage
- Certain health insurance after age 65
- Dividend rate FAQs
- Do the dividend rates ever change? If so, how often and how much notice is given?
Yes, the dividend rates are subject to change on a monthly basis and are posted on the first day of the month in the Delta Community CU branches and on our web site. The rate changes are also reflected on each monthly statement.
How are dividends calculated?
Dividends are calculated on a daily basis. You take your previous balance and multiply by the interest rate and then divide that by 365. This is the daily interest earned. You take this and multiply by the number of days your balance stayed that amount. Any time your balance changes; you will have to perform this calculation.
How does the credit union compute dividends (interest) on Savings/Checking Accounts during leap years, considering there is an extra day?
The dividend payment is based on the actual number of days in the month and the actual number of days in the year. Therefore, during a leap year, the number of days is based on 366. Our dividends are earned on a daily basis.
I'd like to have my dividends mailed to me in the form of a check. Is this possible? How would I set this up?
You may have your dividends deposited to another share or issued by check and mailed to you. To set this up send a message from the secured Message Center or fax us a written, signed request to the Back Office Teller Department at 404-677-4789. Please indicate your correct address for verification purposes.