Health Savings Account

Health Savings Accounts (HSAs) are tax-free accounts established to pay for future qualified medical expenses. The accounts are intended to assist those who have chosen a health insurance plan with a high deductible.

In addition to the savings account, WESTconsin Credit Union also offers an HSA checking account with free checks for easy access to your HSA funds and an HSA Share Certificate to earn even higher dividend rates on your deposit.

How does an HSA work?

• You must have a high-deductible health plan (HDHP)
• Open an HSA - a tax-sheltered savings account you can withdraw from at anytime, tax-free, to pay for medical expenses not covered by your health plan
• Each year you qualify, you can fund your HSA with tax-deductible contributions
• Individuals or employers can contribute to an HSA at any time throughout the year up to the applicable contribution limit
• If you’re age 55 and older, you can make additional “catch-up” contributions
• Carry over any unused funds from the previous year - no "use it or lose it" stipulations 

You are eligible to open an HSA if you are:

• Covered by a qualified HDHP
• Not covered by other health plans which do not qualify as an HDHP
• Not enrolled in Medicare
• Not receiving or have not received veterans medical benefits in the previous three month
• Not claimed as a dependent on someone else’s tax return

For more information on Health Savings Accounts, speak with your insurance company and/or your tax consultant. Then stop in to your local WESTconsin Credit Union office and set up your account with a Financial Services Representative.

Further details, including descriptions of qualified medical expenses and contribution requirements, are also available on the Department of the Treasury: Office of Public Affairs website.