How to Open an HSA with a Credit Union

Posted: December 19, 2022 in Savings

A Health Savings Account (HSA) is a tax-free personal savings account that can be used for qualified medical expenses. You set aside pre-tax money, meaning you won’t pay taxes on it going into the account, to use for things like co-pays, prescriptions, and more. An initial deposit is required when opening one, but you don’t have to pay any upfront fees, and any unused funds roll over year after year, so you don’t lose what you’ve saved.

Qualifications for opening an HSA

If you’re looking to open an HSA with a credit union, there are a few qualifications you’ll need to meet.

By law, you must:

Be 18+ years of age
Be covered under a qualified High-Deductible Health Plan (HDHP). Your account may be subject to certain limitations if you are not covered under a qualified HDHP
Not be claimed as a dependent on someone else’s individual tax return
Not be enrolled in Medicare

You may also open an HSA if you don’t live in the United States, provided you meet the following qualifications:

You are a United States citizen and are paid in US dollars
You have a US Social Security Number

How to Open an HSA with a Credit Union

If you want to enjoy the benefits of a health savings account, check out how easy it is to open an HSA with a credit union.

First, find a credit union that offers HSAs. Not all credit unions offer them, but many do, including ProFed. Click here to learn more about opening an HSA with ProFed.

When you open the account, you’ll need to designate it as an HSA. You will also need to provide identifying information, including a government-issued ID and social security number. The credit union will give further verifying information to the IRS each year for other account activities such as spending and withdrawals.

After opening an HSA, you can fund the account by making contributions from your paycheck or transferring money from another account. You can use your HSA funds for services like doctor’s visits and prescription drugs. Here is a list of 10 surprising things you can buy with your HSA funds.

Four Considerations When Opening an HSA

Available Banking Options: Financial institutions that offer HSAs provide different options, services, and features. Therefore, make sure you choose one with everything you’re looking for before opening an account.
Consider your contribution: You can contribute up to $3,850 per year to an HSA, but you’ll need to factor in other associated costs when deciding how much to contribute. Some HSAs have fees that may include charges for opening or closing an account or monthly maintenance; how you make your pre-tax dollar contributions may also vary from one HSA provider to another.
Choose suitable investment options: HSAs offer significant tax benefits and allow you to invest your money and grow your account balance over time. Talk to our team about the best investment options for your HSA.
Keep good records: Just like any financial account, keeping good records of your HSA contributions and expenditures is essential to stay on top of your finances and keep track of your account balance.

Get More Information on How to Open an HSA with ProFed Today

An HSA is an excellent way to save on healthcare costs. Opening one with a credit union has great benefits, including little to no fees and significant savings on practical expenses. Contact our team at ProFed Credit Union for more information on HSA accounts and if you qualify to open one.

Sources:

www.healthcare.gov/glossary/high-deductible-health-plan/

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