Health Savings Account (HSA)

We are now offering Health Savings Account. Please be sure to consult your tax advisor to discuss how a Health Savings Account at San Francisco Federal Credit Union will best meet your financial goals.

Health Savings Account (HSA) is a tax-favored savings arrangements for individuals and families covered by a high-deductible health plan. Contributions to a Health Savings Account are tax-deductible and distributions are tax-free if used for a qualified medical expense. Your HSA earnings are also tax-deferred.

Health Savings Account (HSA) Benefits
A Health Savings Account (HSA) give individuals more control over their healthcare financing.  HSAs are combined with an HSA-compatible health plans (HDHP) to offer a more affordable approach to healthcare. The health plans typically provide lower premiums and the HSAs provide tax benefits, combined can lead to significant savings.

• HSA Contributions are deductible from federal taxes
• Dividends earned are free from federal tax
• Withdrawals for qualified medical expenses are free from federal tax*
• Un-used HSA assets may be used for retirement (age 65)
• Upon death, HSA assets may become the property of a beneficiary.  A spouse may treat the assets as his/her own HSA, while non-spouse death beneficiaries must treat it as ordinary taxable income.
  
  * Must meet IRS guidelines
  

Who Can Have a Health Savings Account (HSA)?
Any adult can open and contribute to an HSA if they:

• Have coverage under an HSA qualified “high deductible health plan”  (HDHP)
• Are not covered by any Non-HDHP Plan. (other types of insurances that covers accident, disability, dental care, vision care, long term care are permitted)
• Are not enrolled in Medicare
• Are not claimed as a dependent on someone else’s tax return.

Health Savings Account Contribution (HSA) Limits
Individual, his/her employer, or both can make contributions to the Health Savings Account. All contributions are aggregated to determine whether you have contributed the maximum allowed. The contribution limit of contribution is revised each year to reflect cost-of-living increases. 

Catch-Up Contributions
In addition to the standard HSA contribution limits shown, members who reach age 55 before the close of a taxable year may also contribute an additional amount known as a “catch-up contribution”.  The “catch-up contribution” limit is $1,000 for 2009 and after.

For additional information or to open a HSA, please contact us at (415) 775-5377, option 4 or contacts@SanFranciscoFCU.com.

Check out the rates on our Health Savings Accounts.

NCUA (Federally) Insured
Your funds are safe with us. While banks are insured through the FDIC, Credit Unions are federally insured through the NCUA. The NCUA will cover retirement accounts up to $250,000. This is in addition to the $250,000 that the NCUA already covers for other types of accounts. Visit NCUA.gov for more information.