Y-12 Federal Credit Union offers health savings accounts for members with high deductible health plans (HDHP.) Health savings accounts (HSAs) are tax-advantaged custodial accounts established with a written agreement, which are used to accumulate savings to pay for health care expenses. An HSA operates very much like an IRA. There are specific eligibility requirements for opening an HSA, as well as limitations and rules for contributions and withdrawals. The member is responsible for determining whether he or she is eligible for opening the account, and the appropriate amount for contributions, as well as accounting for withdrawals.
An eligible individual is an individual who:
- is covered under a high deductible health plan (HDHP) on the first day of the month,
- is generally not covered by any health plan that is not an HDHP,
- is not enrolled in Medicare, and
- may not be claimed as a dependent on another person’s tax return.
A primary requirement for opening a health savings account is that the individual must be covered under a qualified high deductible health plan (HDHP.) To be considered as an HDHP, the plan has minimum amounts for deductibles, and maximum out of pocket expenses. Please contact any of our branches to learn more.