What is a Health Savings Account (HSA)?
Health Savings Account (HSA) enables you to save for and conveniently pay for qualified healthcare expenses, while you earn tax-free interest and pay no monthly service fees.
Opening a Health Savings Account provides both immediate and long term benefits. The money in your HSA is always yours, even if you change jobs, switch your health plan, become unemployed or retire. Your unused HSA balance rolls over from year to year. And best of all, HSAs have tax-free deposits, tax-free earnings and tax-free withdrawals. And after age 65, you can withdraw funds from your HSA penalty-free for any purpose.*
Health Plans Must Cover OTC COVID-19 Tests
Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) are laws passed which include requiring group health coverage to cover the costs of over-the counter (OTC) COVID-19 diagnostic tests (up to $12.00). The Department of Labor (DOL) and the Internal Revenue Service (IRS) has provided additional guidance to prevent fraud and abuse, the insurer or plan provider, may require an attestation, the OTC COVID-19 test was purchased by the participant, beneficiary, or enrollee for personal use, not for employment purposes, has not been (and will not be) reimbursed by another source, and is not for resale.
EECU HSA Benefits
- Save money tax-free for healthcare expenses – contributions are not subject to federal income taxes and can be made by you, your employer or a third party*
- No monthly service fee – so you can save more and earn more
- Earn competitive dividends on your entire balance – compounded daily and paid monthly from deposit to withdrawal.
- Conveniently pay for qualified healthcare expenses – with a free, no annual fee EECU HSA Debit Mastercard® or via EECU’s free online bill pay. (HSA checks are also available upon request, for a nominal fee**)
- Free online, mobile and branch access – allows you to actively manage your account however you prefer
- Comprehensive service and support – to assist you in optimizing your healthcare saving and spending
- Federally insured – to at least $250,000 by NCUA
*Contributions, investment earnings, and distributions are tax free for federal tax purposes if used to pay for qualified medical expenses, and may or may not be subject to state taxation. A list of Eligible Medical Expenses can be found in IRS Publication 502,http://www.irs.gov/pub/irs-pdf/p502.pdf. As described in IRS publication969, http://www.irs.gov/pub/irs-pdf/p969.pdf, over-the-counter medications (when prescribed by a doctor) are considered Eligible Medical Expenses for HSA purposes. For more information consult a tax adviser or your state department of revenue.
**Call 817-882-0800 or stop by a branch to order HSA Checks: book of 100 costs $26.95.
Annual Maximum Contribution Levels
- Individual Coverage
- Family Coverage
Catch up allowed for those 55 and over – $1,000