Health Savings Accounts

Yakima Valley Credit Union provides Health Savings Accounts (HSA), which offers a different way to pay for your health care with tax advantages. They were created for the consumer who has a qualified-high deductible health plan.

Here's How it Works

To open an HSA, you must have a qualified high deductible health plan with a deductible of $1,100* for an individual plan and $2,200* for a family plan. In addition, annual out-of-pocket expenses (including deductibles, co-pays, and co-insurance) cannot exceed $5,600 for individuals and $11,200 for family coverage.

The maximum annual contribution to an HSA is $2,900 for individuals and $5,800 for family coverage. Those who turn 55 by the end of the tax year can increase their annual HSA contributions by $900 in 2008, with that amount rising to $1,000 by 2009 and thereafter.

Your contributions to your HSA are tax-free, and you can deduct your contributions to your HSA on your income tax return**.

You can withdraw the money to cover a variety of medical costs, including:

• Doctor bills
• Hospital stays
• Drugs
• Lab expenses
• Physical therapy
• X-rays
• Nursing home insurance premiums
• Nursing home costs
• Dental
• Chiropractic
• Artificial limbs
• Eyeglasses and contacts

Unlike an employer’s flexible spending account that enforces a “use it or lose it” rule, you can roll over money saved in an HSA from year to year.

HSAs at Your Credit Union

An HSA at your Credit Union is a convenient checking account. You’ll have access to your funds any time through home banking, by check or a debit card. You’ll earn the savings rate on your balance of $100 to $1,999.99. If your account is $2,000 or more you will benefit with a higher dividend rate (same rate as the Daily Action Investment Account) and the monthly service fee of $2 will be waived.

For specific details about an HSA contact your insurance broker or see the Treasury’s HSA Web site at http://www.ustreas.gov/office/public-affairs/hsa/.

For more information please call 248-1720 (800-347-9222 outside the Yakima calling area), send an e-mail, or visit any Yakima Valley Credit Union location.

Must have a savings account to open an HSA. *2008 amounts; adjusted annually for inflation ** Please consult a tax professional or your insurance broker for advice.