Health Savings Accounts (HSAs) are tax-favored savings arrangements for individuals and families covered by high deductible health insurance plans. HSAs were created by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, and became available January 1, 2004. HSAs allow for tax-deductible contributions and tax-free distributions if distributed amounts are used to pay for qualified medical expenses. Qualified medical expenses include expenses incurred by spouses and dependents even if they are not eligible for an HSA. Although employers may contribute to an employee’s HSA, each HSA is owned and controlled by the individual, not the employer.
Any eligible individual may establish an HSA. Eligibility is determined on a monthly basis. To be eligible, an individual must meet all of the following requirements.
The owner of an HSA is called the "HSA owner."
NOTE: Permitted insurance is insurance under which substantially all of the coverage provided relates to liabilities incurred under workers’ compensation laws, tort liabilities, liabilities relating to ownership or use of property (e.g., automobile insurance), insurance for a specified disease, or illness and insurance that provides a fixed payment for hospitalization.
If you have additional questions, please consult with a tax professional.
Offers a tax advantage to help offset healthcare expenses.
|Minimum Daily Balance to earn||Dividend Rate||APY²|
|$100,000 or more||0.10%||0.10%|
|$50,000 to $99,999.99||0.10%||0.10%|
|$25,000 to $49,999.99||0.10%||0.10%|
|$10,000 to $24,999.99||0.10%||0.10%|
|$1,000 to $9,999.99||0.10%||0.10%|
|less than $1,000||0.10%||0.10%|
¹HSA = Health Savings Account transactions are subject to IRS rules and regulations. To review these rules and regulations, click here.
²APY = Annual Percentage Yield. Rates are variable, may change after the account is opened at any time at DCU’s discretion. Fees may reduce earnings. Other conditions may apply. Please refer to DCU's Account Agreement for Consumers, and Schedule of Fees and Service Charges for important information and disclosures.