Health Savings Accounts | HSA

Eligibility & HDHP Limits

Before you launch your HSA, take a look at your health insurance coverage. To contribute, you must be covered under an HSA-eligible high deductible health plan (HDHP). An HDHP generally requires that you pay out of pocket for medical expenses incurred (excluding certain preventive care expenses) until your deductible is met. After that, plan coverage kicks in. An HDHP may be HSA-eligible if it satisfies the IRS’ annual deductible and out-of-pocket expense limits. However, the rules that define an HSA-eligible HDHP can be complicated so check with your insurance provider or employer to see if your health plan is HSA-eligible.

In addition, to have HSA-eligible HDHP coverage, you:

• cannot be covered by another health plan (with limited exceptions)
• you cannot be enrolled in Medicare, and
• cannot be eligible to be claimed as a dependent on another person’s tax return.

HSA eligibility is determined as of the first day of each month.

HDHP Limits*

2020
Minimum Annual Deductible: $1,400 for self-only, $2,800 for family
Maximum Out-Of-Pocket Expenses: $6,900 for self-only, $13,800 for family

2021
Minimum Annual Deductible: $1,400 for self-only, $2,800 for family
Maximum Out-Of-Pocket Expenses: $7,000 for self-only, $14,000 for family

*These limits are subject to annual cost-of-living adjustments.

Contributions to your HSA

As long as you don’t go over the limits that apply to your type of insurance coverage, you can contribute as much as you want, as often as you want throughout the year until your tax return due date (generally April 15 of the following year). In addition, anyone can contribute for you, even your employer.

HSA Contribution Limits*

2020
Self-Only Coverage: $3,550 ($4,550 if age 55 or older)
Family Coverage: $7,100 ($8,100 if age 55 or older)

2021
Self-Only Coverage: $3,600 ($4,600 if age 55 or older)
Family Coverage: $7,200 ($8,200 if age 55 or older)

*These limits are subject to annual cost-of-living adjustments.

Use this form to transfer your existing HSA balances to your Gulf Coast Educators HSA.

FAQs

How can I use the money?

You may spend the HSA money tax-free on out-of-pocket medical expenses, such as your deductible, co-payments for medical care and prescription drugs, or bills not covered by insurance, such as vision and dental care. Moreover, click here for IRS Publication 969 which contains qualifying expenses.

If I set up HSA through my employer, what happens if I switch jobs?

You can keep the money in an HSA account even after you leave that job, similar to a 401(k). However, you will get stuck with a 20% penalty — plus an income-tax bill — if you use any of the money for non-medical expenses before age 65.

Can I keep contributing to the account after age 65?

You can keep your HSA at any age, however, you can no longer make new contributions to the account after you have signed up for Medicare. Some people over age 65 who are still working put off signing up for Medicare if their employer offers a high-deductible health insurance policy with an HSA — especially if their employer contributes to the account.

Will I earn dividends on this account?

Yes, see rates below.

BALANCE	DIVIDEND RATE	ANNUAL PERCENTAGE YIELD	MINIMUM OPENING BALANCE	MINIMUM BALANCE TO EARN DIVIDENDS
$0 - $499.99	No dividends paid	No dividends paid	$100 for all IRA types. No minimum to open HSA	$500 for all types
$500 - $9,999	0.15%	0.15%
$10,000 - $49,999	0.20%	0.20%
$50,000 - $99,999	0.25%	0.25%
Over $100,000	0.30%	0.30%

Dividends compounded monthly | Dividends credited monthly | Dividend Period is monthly | Balance Method is daily

HSA Administration for Districts

Gulf Coast Educators Federal Credit Union offers members of the credit union HSAs in response to the increase in popularity of High Deductible Health Plans (HDHP) offered by school districts in our service area (TRS Active Care). In addition, our Health Savings Accounts have some distinct advantages to our members:

• The ability to make additional deposits in person, by mail or online, including same day deposits
• No monthly service charges
• Instantly issued Visa debit card
• Earns dividends
• Local, trusted employees to support HSA holders

In addition to saving school district employees money, we offer our HSA Program to school districts and their employees with qualifying HDHPs in the state of Texas. The credit union will administer a school district’s Health Savings Account program at no charge to the district. Our offer includes:

• No per user charge to district
• No set up fee
• Unlike Flex Spending Accounts, we do not prefund accounts
• District can send pre-tax or post-tax funds via direct deposit or payroll deduction
• HSAs can be opened electronically or on site
• Co-branded debit card
• Presentations on benefits of Health Savings Accounts to district employees

If your school district would like more information on our HSA Administration Program, please fill out the contact form below and we will contact you shortly.

HSA Investment Option

We’ve partnered with myHSAinvestments® to allow our HSA account holders to invest their HSA funds in a collection of mutual funds. Why would you want to invest your HSA dollars? Let’s consider just a few of the benefits of investing:

• Maximize your tax savings
• Earn more on your unused dollars
• Save for health care in retirement
• Take control of your money and your investment activity
• Easy access to your money, when you need it most

About myHSAinvestments

myHSAinvestments is a suite of mutual funds available to you that allows you to invest a portion of your health care dollars in a variety of widely recognized mutual funds covering a spectrum of asset classes. The ability to invest in mutual funds gives you the potential to grow your HSA balance and save for future health care expenses.

How does the account work?

myHSAinvestments are self-directed investments, but are still considered part of your HSA for tax purposes. This means you choose from the available list of funds in which to invest a portion of your HSA dollars. Any earnings from your HSA investments grow tax free.

Do I need to understand investing to use myHSAinvestments?

You do not need to be experienced at investing to use myHSAinvestments. Start by visiting myHSAinvestments.com and selecting the “Learn More” button on the “Home” page, and you will be guided through the set-up process.

How do I enroll in myHSAinvestments?

Enrolling at myHSAinvestments.com is easy.
1. Visit www.myHSAinvestments.com and complete the short application linking your HSA account to the investment platform.
2. You will need to enter your HSA account number and ABA routing number as well as a few pieces of identifying information, and select your initial investment elections.
3. Once you enroll, your HSA account number and requested balance information will be verified.
4. When the account has been verified, an ACH transfer will move the money from your HSA to your myHSAinvestments account and invest the money into your initial investment elections.
5. You will receive a confirmation email from myHSAinvestments notifying you when the account has been set up. At this point, you can view your account.

What research tools are available to me in myHSAinvestments?

Mutual fund prospectuses and Morningstar® reports can be found on the myHSAinvestments website. Under “Planning Tools,” you will find the “HSA Guided Portfolio” to help you select investments that fit your objectives, and a variety of other HSA resources to help you get the most out of your HSA.

What is HSA Guided Portfolio? HSA Guided Portfolio is a planning tool that helps you make the most appropriate investments for your objectives and risk tolerance. Think of it as: “We Guide, You Choose.”

After completing a few simple questions about your risk tolerance, how you intend to use your HSA investment account, and your need to access the money in your myHSAinvestments account, a potential allocation mix is provided.

This allows you to choose your investment options; select the rebalancing timing that meets your needs; and enroll in the autorebalance option, which automatically rebalances your investment assets on a monthly, quarterly, or yearly cycle.

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Frequently Asked Investment Questions

What does it cost to use myHSAinvestments?

When you activate your myHSAinvestments account, you pay a 0.50 percent annual fee invoiced quarterly (0.125 percent per quarter or $1.25 per $1,000 of account value).

The minimum quarterly myHSAinvestments account service fee is $5.00. This will be deducted from your myHSAinvestments account each quarter, around the tenth business day of the month following the end of the quarter that your myHSAinvestments account was opened. Standard expense ratios and fees inside the mutual funds may apply based on the funds you choose.

What are my mutual fund options?

The current lineup of myHSAinvestments mutual fund options can be found at myHSAinvestments.com under Investment Options.

How do I obtain a prospectus for the available mutual funds?

You can find links to each fund’s prospectus under the “Planning Tools” section of the myHSAinvestments website. Simply click “Mutual Fund Information.” Next to each fund is a link to the prospectus.

How often can I make changes to the mutual funds in myHSAinvestments?

You can make changes to your investment holdings once a day. Keep in mind, mutual funds are considered long-term investments and some funds may charge short-term redemption fees to discourage market timing practices. Please review the fund’s prospectus for fees related to the fund’s short-term trading policies.

How do I pull money from my HSA investments back to my base account to pay a bill?

You can move money back to your base HSA by using the “Transfer to HSA Account” link under the “Plan Services” tab. Your mutual funds will be liquidated according to your current fund percentage allocations and dollars will typically be transferred to your base HSA account within two to three business days.

How often are my balance and activity information in myHSAinvestments updated?

Your balance and activity status are updated on a nightly basis in accordance with New York Stock Exchange trading days.

What minimum investments apply?

No minimum investment amounts apply to the mutual funds through myHSAinvestments.

What commissions or loads apply?

The mutual funds in this program are either no-load, load-waived, or (where available) institutional share class funds, which means any retail loads or commissions do not apply.

How often should I re-balance my asset allocation in myHSAinvestments?

myHSAinvestments is self-directed, which means you’re in charge of important decisions like when to rebalance your portfolio so your investments stay in line with your original asset allocations.

Rebalancing is important because it requires you to review your goals, objectives, health care needs and
risk tolerance on a regular basis (the frequency is up to you). With HSA Guided Portfolio, you can automatically schedule rebalancing and easily maintain your asset allocation strategy. Be sure to consult your personal investment advisor before making any investment decisions.

What is the expense ratio of the mutual funds?

The expense ratio will vary by fund. You can find this information in the fund’s prospectus or the current Morningstar® report by clicking on the fund name in your myHSAinvestments investment account. We make every effort to provide the share class with the lowest possible expense ratio available.

How will I know if the funds I choose are subject to redemption or exchange fees?

Redemption and exchange fees will vary by fund and fund family, so you should consult the fund’s prospectus for redemption or exchange fee information. You may also find redemption fee information on the fund’s website under the “Realignments” link.

What happens to the dividends or interest I earn on my mutual fund investments?

Dividend or interest income earned on your mutual fund investments is automatically reinvested back into the fund based on your investment selections.

If a new fund is added to the group of available mutual funds within the same asset class, can I invest in both funds?

From time to time, we may make changes or additions to the group of available funds. As a self-directed offering, you may invest in any or as many funds as you choose.

If I own any of the mutual funds in the myHSAinvestments outside of the myHSAinvestments, will I be eligible for breakpoints?

The mutual funds in myHSAinvestments are traded without a “load” commonly known as “load-waived.” These shares typically would not apply when purchasing load funds of the same family outside of myHSAinvestments. Contact the fund company directly to review their individual policies on breakpoints.

Is the money I invest in myHSAinvestments FDIC or NCUA insured?

No. Mutual funds are not insured by the FDIC NCUA, nor are they guaranteed by Gulf Coast Educators Federal Credit. As is the nature of investing, mutual funds may lose value, so it is your responsibility to understand the risks of investing your HSA dollars.

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myHSAinvestments is powered by Devenir.

 

Neither Gulf Coast Educators Federal Credit Union, nor Devenir Group, LLC, the third party, can provide investment advice to you on this program. Once you transfer funds from your HSA to myHSAinvestments, these dollars are no longer covered by applicable FDIC or NCUA insurance. We recommend you speak with a licensed investment advisor or consult the prospectus should you have questions about any investment. Carefully weigh the advantages and disadvantages of investing your HSA funds before doing so. Investment products are not federally-insured; may lose value and are not a deposit account. Investment accounts are not obligations of the credit union and are not guaranteed.

Funds should not be considered a deposit of or guaranteed by this institution, may lose value, and are not NCUA/NCUSIF Insured.

Rates & Disclosures

Standard IRA & Health Savings Accounts (Traditional, Roth, & Education IRAs)

BALANCE	DIVIDEND RATE	ANNUAL PERCENTAGE YIELD	MINIMUM OPENING BALANCE	MINIMUM BALANCE TO EARN DIVIDENDS
$0 - $499.99	No dividends paid	No dividends paid	$100 for all IRA types. No minimum to open HSA	$500 for all types
$500 - $9,999	0.15%	0.15%
$10,000 - $49,999	0.20%	0.20%
$50,000 - $99,999	0.25%	0.25%
Over $100,000	0.30%	0.30%

Dividends compounded monthly | Dividends credited monthly | Dividend Period is monthly | Balance Method is daily

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Truth in Savings Account Disclosures

Health Savings Account Agreement
Except as specifically described, the following disclosures apply to all of the accounts.

1. Rate information.

   The Dividend Rate and Annual Percentage Yield on your accounts are set forth above. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and the frequency of compounding for an annual period. Dividend Rate and Annual Percentage Yield may change monthly as determined by the Credit Union’s Board of Directors. A withdrawal will reduce earnings.

2. Nature of Dividends.

   Dividends are paid from current income and available earnings after providing for the required reserves. The Dividend Rates and Annual Percentage Yields are the prospective rates and yields that the Credit Union anticipates paying for the applicable dividend period.

3. Compounding and Crediting.

   Dividends will be compounded and credited as set forth above. The Dividend Period for each account is set forth above. The Dividend Period begins on the first calendar day of the Dividend Period and ends on the last calendar day of the Dividend Period.

4. Balance information.

   The minimum balance required to open each account is set forth above. Dividends are Calculated by the Daily Balance method which applies a periodic rate to the balance in the account each day.

5. Accrual of Dividends.

   Dividends will begin to accrue on cash deposits on the business day you make the deposit to your term account. Dividends will begin to accrue on noncash deposits (e.g. checks) on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued but unpaid dividends will be paid on term share certificates; accrued but unpaid dividends for all other accounts will not be paid if you close the account before accrued dividends are credited.

6. Transaction Limitations except for checking transactions.

   During any statement period, you may not make more than six withdrawals or transfers to another credit union account of yours or to a third party by means of a preauthorized or automatic transfer or telephonic order of instruction. No more than three of the six transfers may be made by check, draft, debit card, if applicable, or similar order to a third party. If you exceed the transfer limitations set forth above in any statement period, your account may be subject to closure by the credit union.

7. Fees could reduce earnings on the account.