Health Savings Account (HSA)

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 $9.50 per 50 checks.
  • To establish your HSA, there is a one time fee of just $20. There no fee if the account is active.  There is a $2 monthly service fee if the balance is below $500 AND there has been no activity for six months.
  • 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!
  • Protection. You will have an opportunity to save money to pay high or unexpected medical bills.
  • Affordability. High health 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.

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.

To open a HSA, you must be covered by a high-deductible health plan. The deductible must be at least $1,350 for an individual plan and at least $2,700 for a family plan. The major advantage of a high-deductible plan is lower premiums!

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 2019 cannot exceed $3,500 for an individual plan or $7,000 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.

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.

To be coordinated with an HSA in 2019, a high-deductible health plan cannot have out-of-pocket limits which exceed $6,750 for an individual plan or $13,500 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.

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.

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

Your Warranty of Safety

Westby Co-op Credit Union is federally insured by the National Credit Union Administration (NCUA).