Health Savings Accounts

What is an HSA?

It's a tax-deductible savings account that you deposit money into in order to pay for health expenses such as:

For a more in-depth look, take a look at this free module »

HSA Benefits:

  • Tax Savings. HSAs come with the following tax benefits:
    • You can contribute to them on a pretax or tax-deductible basis, and your savings grows free of taxes over time.
    • You can also make tax-free withdrawals to cover qualified medical expenses.
  • Ownership. Funds rollover in the account from year to year, just like an IRA.
  • Earned Interest. Dividends earned are tax-free.
  • Portability. You, not your employer, own the account so you can always keep your HSA.
  • Flexibility. You can use the funds in your HSA to pay for current and future medical expenses, including those not covered by your insurance.


To contribute to a Health Savings Account you: must be covered under a High Deductible Health Plan (HDHP), may not be covered by any other health plan that is not a HDHP, may not be enrolled in Medicare, may not be a recent recipient of VA medical benefits and cannot be claimed as a dependent on another person's tax return.

Availability of Funds

Withdrawals are tax free if the funds are used exclusively for paying or reimbursing qualified medical expenses for the owner, his or her spouse and eligible dependents. Qualified expenses are those incurred after the account is open.

For questions or to open an account, call us at 800-325-9905 or email

*Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government National Credit Union Administration, a U.S. Government Agency.