Health Savings Account (HSA)
A Health Savings Account or HSA is an alternative to traditional health insurance. It is a savings product that enables you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis. You own and control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer.
A STAR Health Savings Account (HSA), combined with a high-deductible health plan (HDHP), allows you to save for future medical expenses. Talk to your employer or insurance agent and tell them about the STAR Credit Union HSA. Then give us a call. We’ll be glad to answer any questions you may have.
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
High Deductible Health Plan Limits (HDHP)
|Limits for 2013||Self-Only Coverage||Family Coverage|
|Minimum Annual Deductible||$1250||$2500|
|Maximum Out-of-Pocket Expenses||$6250||$12500|
STAR Health Savings Account
- $50 minimum balance required to open the HSA account
- First box of 50 duplicate checks are free
- Free 24-Hour Telephone Teller
- Free 24-Hour access to our Online Banking system (including check images)
- Earn tiered dividends on entire balance in account (minimum $100 to start earning interest)
- $2 monthly fee with eStatements ($3 for paper statement)
- $25 account closing fee
- View current rates
- Print out a brochure
- No Annual Fee
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.
|Annual Contribution Limits||Self Only||Family|
|2012 Contribution Limits||$3100||$6250|
|2013 Contribution Limits||$3250||$6450|
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 an HSA please contact our New Accounts Representative at (530) 895-1947 x 204.