Health Savings Accounts (HSAs)
If you have a qualifying high-deductible health plan, simplify your life by opening or moving your HSA to Ideal CU. You’ll earn a competitive yield with no fees and no minimum distribution amount. Interest earned is also tax free. Learn more about HSAs.
Health care can be expensive – we understand. That’s why we created a tax-exempt savings account designed specifically to help you save money for health care expenses.
A Health Savings Account (HSA) is what you get when you combine a high-deductible health insurance plan (HDHP) and a tax-exempt account owned by an individual. HSAs are designed for individuals to use pre-tax dollars to help pay for current and future medical expenses.
Contributions are 100% tax-deductible
- Funds grow on a tax-deferred basis and if the funds are used for an eligible medical expense they are tax-free
- Funds roll over from year to year, and funds used after age 65 can be used tax-free for eligible medical expenses or at a normal tax rate for any other reason
- Federally qualified Health Savings Accounts are tax-deductible, tax-deferred and tax-free
- Tax-deductible: Contributions to your HSA can be deducted from your gross income
- Tax-deferred: HSA funds grow without being subject to taxes until they are used for non-eligible medical expenses
- Tax-free: The funds in an HSA are completely tax-free when used for eligible medical expenses
Federal vs. State Tax Benefits
Health Savings Accounts are made available through the federal government on a tax-favored basis. To determine if your state also provides tax benefits for Health Savings Accounts, please contact your state tax resource.
Keeping Track of Your Records/Receipts
Accountholders are responsible for keeping records/receipts for all medical expenses when the HSA has been used. To help, we have several tools available through our online banking program. Get access to:
- Account activity, as far back as 18 months -- and with electronic statements, you can view the past 7 years worth of statements
- Images of your checks written
- Records of your debit card transactions.