Health Savings Account
A pre-tax Health Savings Account helps cover health insurance deductibles and expenses. It’s available to those with an eligible High Deductible Health Plan (HDHP).
What is a Health Savings Account and who qualifies for one?
A Health Savings Account (HSA) is a tax-favored account designed to help individuals save pretax dollars for qualified medical expenses and retiree health expenses. To qualify for an HSA, an individual must have a high-deductible health plan (HDHP). Learn More about Health Savings Accounts.
It's Easy to Start a Health Savings Account at Dane County Credit Union
• Check with your health plan administrator for eligibility.
• View DCCU's current HSA rates.
• Open your savings account:
- DCCU members can go online (click Open a New Account link) or visit any DCCU branch.
- Not a member yet? Start by opening your DCCU account online or visit any DCCU branch.
• Then access your funds like a checking account when qualified expenses arise.
*APY is Annual Percentage Yield. No minimum to open. Minimum balance to earn dividends is $100. Minimum deposit is the minimum balance to earn dividends and does not include the required $5 membership share savings account. Dividends are compounded and paid monthly.
Can the credit union help me determine if I qualify for a Health Savings Account?
No. Your health insurance plan administrator will be able to assist you with this determination.
Does the credit union monitor or approve my HSA transactions?
No. The HSA account holder is solely responsible for funds going out of the account and must keep sufficient records to show that the distributions were used exclusively to pay or reimburse qualified medical expenses. The records must show that the qualified expenses were not previously paid or reimbursed from another source and that they have not been taken as an itemized deduction in any prior year.
Does the credit union keep track of my annual contributions?
Yes. We cannot accept annual contributions that exceed the maximum allowable amounts. However, if your deductible is less than the maximum allowable limit, the credit union is not responsible for determining the amount that you are actually allowed to contribute. It is your responsibility to notify the credit union of any excess contributions.
Do you notify the IRS of my HSA contributions and distributions?
The credit union files required annual information returns with the Internal Revenue Service for all HSA accounts.
What types of things are qualified medical expenses?
What if I spend the money on something other than a qualified medical expense?
The amount that exceeds the amount of qualified expenses will be subject to federal income tax and an early withdrawal penalty.
Must I use all the money each year like my flexible spending plan?
No. The funds in your HSA can continue to be used for qualified health expenses in future years.
Can I use my HSA to pay for medical expenses for my spouse or my dependent child?
Yes, distributions from an HSA are excluded from income if they are made for any qualified medical expense of your spouse or other dependent.
Who is allowed to make a contribution to a member's HSA?
Anyone can make a contribution to an HSA on behalf of an eligible individual. All contributions, regardless who makes them, will be applied toward the total amount that the member is eligible to contribute.
How can I access my DCCU Health Savings Account?
Your DCCU HSA is set up like a checking account. You can access the funds in any number of ways:
- Checks are available. You may simply write checks from your HSA account to pay medical expenses.
- Bill Pay service is available. You can set up various vendors for your individual or recurring medical expenses.
- Automatic debit is available. If you have a recurring medical payment, you can have the provider debit the payment from your HSA.
- Debit card is available. You may use a debit card to conveniently access your HSA account.
What will happen if I overdraw my HSA?
You will be assessed non-sufficient funds (NSF) fee (current service pricing), just as you would with a standard checking account. We will, however, be unable to honor the NSF check, or provide any type of overdraft protection, because the credit union would have no way of knowing whether we might inadvertently be over-contributing to your HSA. Health Savings Account overdraft items will, in all cases, be returned. The fee will not increase your annual contribution limit.