Health Savings Accounts

A Health Savings Account (HSA) is a tax-deductible savings account with tax-free withdrawals for qualified medical expenses.

Eligibility
To make contributions to an HSA the account owner must meet all of the following requirements:
-Must be covered under a High Deductible Health Plan* (HDHP)
-Is not covered by any other health plan that is not a HDHP
-Is not enrolled in Medicare
-Cannot be claimed as a dependent on another person's tax return
-Is less than 65 years old. Individuals may not make regular contributions to an HSA in or after the tax year they reach age 65.(Please note: Individuals who have not signed up for Medicare and meet all of the additional HSA eligibilities can contribute to an HSA account.)

Availability of Funds
Withdrawals are tax-free if funds are used exclusively for paying or reimbursing qualified medical expenses. Qualified medical expenses are those incurred after the account is opened. These include doctor visits, prescription drugs, and over-the-counter medicines for the owner, his or her spouse and dependents.

Account Access
An HSA CheckCard will be created for the purpose of accessing Health Savings Accounts. The account can be accessed through HomeBranch, TellerFact, and an ATM. It can also be used at point of sale as a signature or pin based transaction to pay medical expenses such as doctor visits and medications. Account statements will be issued monthly.

Minimum Deposit
A $5 minimum deposit to the regular savings account is required. In addition to the savings account, a checking account will be opened and a DHCU CheckCard is issued.

Dividends
HSA dividends are tiered. Click here to see rates.

Contributions
Contributions for the current year can be made until April 15th of the following year. The maximum contribution limits are listed below.

2007 Year
Single Coverage $2,850
Family Coverage $5,650
Catch-up Provision for 55 or over $800

2008 Year
Single Coverage $2,900
Family Coverage $5,800
Catch-up Provision for 55 or over $900

Rollovers
Rollover contributions can be made to an HSA from another HSA or from an Archer MSA. Rollovers are not subject to the annual contribution limits; however, owners can make only one rollover within a 12-month period. To qualify as a rollover and avoid a tax penalty, all money withdrawn must be re-deposited within 60 calendar days.

Transfers
Transfers may be made from custodian to custodian; because the account owner never has the funds in his or her possession, an unlimited number of transfers are allowed without a tax penalty. A portion or all of the funds from one HSA or an Archer MSA can be transferred to another HSA tax free.
*A High Deductible Health Plan (HDHP) is a medical insurance plan with a deductible of at least $1,000 for single coverage (account owner only) with a maximum out-of-pocket cap of $5,000; or a deductible of at least $2,000 for family coverage with a maximum out-of-pocket cap of $10,000.