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*

2023
Minimum Annual Deductible: $1,500 for self-only, $3,000 for family
Maximum Out-Of-Pocket Expenses: $7,500 for self-only, $15,000 for family

2024
Minimum Annual Deductible: $1,600 for self-only, $3,200 for family
Maximum Out-Of-Pocket Expenses: $8,050 for self-only, $16,100 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*

2023
Self-Only Coverage: $3,850 ($4,850 if age 55 or older)
Family Coverage: $7,750 ($8,750 if age 55 or older)

2024
Self-Only Coverage: $4,150 ($5,150 if age 55 or older)
Family Coverage: $8,300 ($9,300 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.

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

HSA store Partnership

We’ve partnered with the HSA store to provide our members the peace of mind of knowing that all the items they purchase are HSA eligible.

Rates & Disclosures

Health Savings Accounts (HSA) Rates

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

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.