Health Savings Account
Why is a Health Savings Account important?
By establishing a Health Savings Account, you are putting control of your healthcare spending back into your own hands.
A Health Savings Account (HSA) is a tax-exempt account established in conjunction with a High Deductible Health Plan (HDHP) exclusively for the purpose of paying qualified medical expenses of the account owner and dependents.
- 2.00%/A.P.Y.* (Annual Percentage Yield)
- $50 minimum initial contribution.
- $50 minimum account balance required to earn a dividend.
- Dividends compounded daily, credited monthly.
- Initial setup fee is $15 which is waived with an Ashland CU checking account.
- No withdrawal fees.
- No monthly account maintenance fees.
- No account transfer fees.
To open an HSA, complete the following:
- If you are not already a member of Ashland CU, you must apply for membership.
- Review and familiarize yourself with pages 2-5 of the HSA Custodial Agreement and Disclosure Statement.
- Complete the HSA Application.
- Complete the HSA Eligibility and Information Form.
- Complete Sections II and III of the Ashland CU Disclosure Statement.
Requirements
- You must be covered by an HDHP and you can not be covered by any other medical plan that is not an HDHP.
- Balances in an HSA account carry forward from year to year.
- Contributions to an HSA account are deductible for federal tax purposes, and subject to the limits under tax codes.
- Annual contributions are capped by the federal government.
- Participants age 55 and over may be able to contribute and annual “catch up” contribution.
Contributions
- $50 minimum initial contribution
- Periodic contributions through:
- Payroll deduction/direct deposit
- ACH from another account of applicant
- Personal checks
- Transfer from ACU savings, checking or money market account
Distributions
- Check withdrawal ($25 minimum)
- Debit card via HSA funds transfer to an Ashland CU checking account
- Free HSA convenience checks (8 annually)
- Additional convenience checks available for $1.00 (4 checks per page)
- Ashland CU checking account overdraft fees apply
- Monthly account transfer and withdrawal limitations apply.
Rates
Health Savings Accounts
Effective Date: Thursday, November 21st, 2024
| Account Type | Dividend Rate | *A.P.Y. | Dividends Compounded | Dividends Paid | Minimum Amt to Receive Dividend |
|---|---|---|---|---|---|
| Health Savings Account | 1.980% | 2.00% | Daily | Monthly | $50 |
| Rate may change after the opening of any of the above accounts. Fees may reduce earnings on the account. *A.P.Y. = Annual Percentage Yield,. The dividends are variable rates, compounded daily and paid monthly. | |||||
To hear more about what our HSA program can do for you, call us at 1-800-245-8112. For additional information on Health Savings Accounts, please consult your tax professional, log-on to the IRS’s website at www.irs.gov, or the US Department of the Treasury’s website at www.ustreas.gov.
* A.P.Y. (Annual Percentage Yield) rate is variable and is subject to change.