Health Savings Account
medical savings with a tax advantage
The Health Savings Account (HSA) allows you to set aside pre-tax dollars to pay for current or future qualified medical expenses, similar to flex-spending accounts. These contributions into your account are tax deductible and the dividends paid to the account are tax-free. Any unused funds remain in the HSA year after year, earning tax-deferred dividends. Additional information is available at www.IRS.gov.
- Member must have a High Deductible Health Plan (HDHP).
- Member has no other health coverage.
- Member is not enrolled in Medicare.
- Member cannot be claimed as a dependent on someone else's prior year tax return.
- Contributions are tax deductible and are made on a pre-tax basis.
- Contributions made by the employer are not taxable to the employee.
- Dividends are tax-free.
- The distributions (contributions and interest) from the account are tax-free as long as they are used for qualified medical expenses for a spouse and or dependents.
- Funds are insured up to $250,000 by the NCUA and are accessible just as your savings account.
- Funds will remain in your account from year to year until they are used.
- HSA accounts are owned by the member and are portable from institution to institution.
- Once in retirement, HSA funds may be used to pay for retiree health insurance, Medicare expenses, prescription drugs, long-term care, and a variety of other health services.
- Catch-up contributions are allowed for individuals age 55 and older.
- Interest bearing account.
- Easy access to funds.
- Transactions appear on statements.
- Payroll direct deposit available with no fees.
- NCUA insurance.
- No enrollment fees.
How to Enroll
- Enrollment in a HDHP with your employer or private insurance carrier.
- Call or stop by a Wasatch Peaks Credit Union branch to complete the HSA application.
View our current Health Savings Account rates.