Health Savings Accounts (HSA)
Offering Peace of Mind for Health care
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). Convenient and tax-advantaged, HSA accounts help offset high deductible health plans such as TRS ActiveCAre 1-HD. With the Health Savings Account from Gulf Coast Educators, prepare yourself for future health needs.
Our HSAs 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
An eligible individual is someone who:
- is covered under a high deductible health plan (HDHP),
- is generally not covered by any health plan that is not an HDHP,
- is not enrolled in Medicare or has not received VA medical benefits in the last three months, and
- is not eligible to be claimed as a dependent on another person’s tax return.
How much can I contribute? You can make pretax contributions (or tax-deductible contributions, if you’re on your own) in 2017 of up to $3,400 a year if you have individual coverage, or up to $6,750 if you have family coverage. The minimum deductibles to qualify for an HSA are $1,300 for single and $2,600 for family.
How can I use the money? You may spend the HSA money tax-free on out-ofpocket 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. Click here for IRS Publication 502 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). But you will get stuck with a 20% penalty — plus an income-tax bill — if you use any of the money for nonmedical expenses before age 65.
Can I keep contributing to the account after age 65? You can keep your HSA at any age, but 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.
Can I designate beneficiaries for my HSA? Yes, click here to access the form. If you are married and are designating someone other than your spouse, you will need to contact us so we can send the form for your spouse to sign.
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|
|$500 - $4,999||0.40%||0.40%||$100 for all IRA types. No minimum to open HSA||$500 for all types|
|$5,000 - $9,999||0.50%||0.50%|
|$10,000 - up||0.60%||0.60%|
Dividends compounded monthly
Dividends credited monthly
Dividend Period is monthly
Balance Method is daily
Truth in Savings Account Disclosures
Except as specifically described, the following disclosures apply to all of the accounts.
- 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. The Dividend Rate and Annual Percentage Yield may change monthly as determined by the Credit Union’s Board of Directors. A withdrawal will reduce earnings.
- 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.
- 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.
- 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.
- 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.
- 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.
- Fees could reduce earnings on the account.