Health Savings Account

                                                        

A Health Savings Account (HSA) gives you more flexibility and control over your health care costs. That's because it empowers you to make your own health care decisions.

• With HSA, you can enjoy access to your account with a free debit card. You also have the option of writing checks from your account. Checks are available for $10.50 per 50 checks.
• To set up an HSA, there is a charge of just $20. If a balance of $500 is maintained, the $2.00 monthly fee is waived.
• Balances of $50+ will earn a competitive dividend rate. Please note that there is a close out fee of $20 and that all overdrafts will be $20. There is no overdraft protection with this account. For questions or to open your HSA, please contact us at WCCU and we will be happy to assist you!

HSA Benefits

• Protection. You will have an opportunity to save money to pay high or unexpected medical bills.
• Affordability. High heath insurance policy deductibles mean lower premiums.
• Savings. Your ability to deduct your contributions and the tax deferral of account earnings enable you to build your account.
• Flexibility. You can contribute at any time during the year, and your HSA balance rolls over from year to year.
• Portability. You own the account, so it goes where you go, regardless of any job changes.

Use Pre-Tax Dollars To Pay For
Future Medical Expenses

You will be able to deduct your contributions to your HSA, and the account earnings will accumulate on a tax-deferred basis. Best of all, distributions from your HSA are tax-free if they are used for qualified medical expenses.

Opening your HSA

To open an HSA, you must select a high-deductible health plan. The deductible must be at least $1,200 for an individual plan and at least $2,400 for a family plan. The major advantage of a high-deductible plan is lower premiums!

Contributing to your HSA

You must enroll in a high-deductible health plan before you can make HSA contributions. The maximum annual HSA contribution is the deductible under your high-deductible health plan. But the contribution for 2010 cannot exceed $3,050 for an individual plan or $6,150 for a family plan. Your employer's contributions to your HSA are tax-free, and you can deduct your own contributions to your HSA on your income tax return.

Account Balance is Carried Over

Unlike contributions to a flexible spending account, the balance of your HSA at the end of the year is carried over to the next year. So you're not placed in a position of having to "use it or lose it" each year.

Protection from Catastrophic
Medical Costs

To be coordinated with an HSA in 2010, a high-deductible health plan cannot have out-of-pocket limits which exceed $5,950 for an individual plan or $11,900 for a family plan. The high-deductible health plan provides you with protection from catastrophic medical costs, and the HSA provides you with a source of funds to pay some or all of the costs not covered by the health plan.

Control and Flexibility

An HSA enables you to take control of your health care decisions. And since you are the owner of your HSA, it doesn't matter what your job status is or whether your employer makes contributions to your plan. Your HSA will always follow you.

Statements

Semi-annual statements are mailed at no charge. (Members with a WCCU checking account receive a monthly statement of all their WCCU accounts.)

Your Warrant Of Safety

Westby Co-op Credit Union is federally insured by the National Credit Union Administration (NCUA). For more information on your NCUA Federal Share Insurance, click here (PDF).