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:

  • Copays

  • Deductibles
  • Prescriptions
  • Etc.

Here's a more in-depth look into what an HSA is >>>

HSA Benefits:

  • Tax Savings. Annual contributions are tax-deductible* from federal and even several qualifying states taxes.
  • 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, such as doctor visits, prescription drugs and over-the-counter medicines for the owner, his or her spouse and dependents. Qualified expenses are those incurred after the account is opened.

Open & Manage your HSA today »

Still have questions about HSAs? Find answers in our frequently asked questions. Visit your local branch or call our Member Contact Center at 800-325-9905.

*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.