Health Savings Account (HSA)
Save for medical expenses & get tax benefits
A Genisys Health Savings Account (or HSA) can help you plan and save for health expenses you may incur when you are covered by a High Deductible Health Plan. A HSA is a tax sheltered account set aside for qualified medical expenses.
At Genisys Credit Union, your Health Savings Account funds can be deposited to a HSA Checking account that pays dividends at a highly competitive credit union rates so your balances grow as they remain in your account and makes paying medical expenses easy.
To open your Health Savings Account at Genisys visit our Retirement Central page and click on
"Open an IRA".
Benefits of a Health Savings Account
- No fees
- No minimum balance requirements
- HSA Checking earns dividends computed daily, paid and compounded monthly.
- Convenient Debit Card Access
- Funds not used in a given year are rolled over to the next year and grow tax-free with interest earned.
- Tax benefits
- Annual contributions are deductible from federal taxes up to the maximum allowable amount
- Dividends earned are free from federal taxes
- Qualified withdrawals are free from federal taxes
- Some states allow tax deductibility and do not tax dividends earned. Consult a tax advisor for details.
Open an HSA!
- Open an HSA Online
- Visit a local branch
- Call a Financial Services Representative at 800-521-8440, ext. 5
Health Savings Account FAQs
What is a health savings account?
Health Savings Accounts (or HSAs) work similar to other types of personal savings accounts, except they can only be used to pay for medical expenses. The funds in your HSA can be used at any time to pay for qualified medical expenses above and beyond what your insurance or deductible may cover.
Genisys offers Health Savings Accounts that pay dividends on the amount in your account, helping you grow your balance above and beyond your normal monthly deposits.
How does a health savings account work?
Think of it as a fund for future medical needs. Contributions are made into your HSA either by the account owner (you) or, in some cases, your employer, similar to a retirement plan or other types of savings accounts. The money you contribute into this account can be used to pay for any current or future health care cost, including elective procedures, emergency treatments, major surgeries, and the like. These contributions are taken out on a pre-tax basis, and may be able to be claimed as deductions on your taxes the following year.
Your Genisys health savings account offers easy debit card access, allowing you to use the money in your HSA the same way you would from a checking account, making it even easier to pay for your health care services.
HSAs work in tandem with any health plan that has a high deductible. The primary aim of a health savings account is to provide both an investment in your future, and additional health coverage above and beyond what your insurance will pay for.
What can you use a health savings account for?
Generally speaking, you can use a health savings account to pay for any qualified medical expense. “Qualified medical expenses”, as defined by the IRS, include:
Prescription drug expenses
Payment for long term care services (physical therapy, etc)
How can I check my HSA balance?
How much should I put in my health savings account?
The easy answer is to say you should put as much as is financially viable into your HSA. The main goal of a health savings account is to help cover any incurred medical expenses, whether emergencies or otherwise, and making the maximum contributions you can afford will help provide you a safer landing cushion for any expenses that may arise.
It is important to remember that the IRS puts a cap on how much you can contribute to your HSA per year; as of 2020 the limit is $3,550. By getting as close to this amount as you can comfortably afford, you can help take further financial burden off of any needed medical procedures.
Do health savings accounts roll over?
Yes! The funds in your account roll over automatically each year and remain there indefinitely, with no penalty or interest on unused funds. This allows you to continue building up your available funds in case you encounter an unexpected medical expense, even if you haven’t used the money yet.
How does a health savings account affect my taxes?
The money you deposit into your HSA is not subjected to federal income tax at the time the deposit is made. As a result, you can deposit money at a higher pre-tax rate than you might’ve been able to otherwise. Contributions to your HSA by your employer (if your employer participates in HSA contributions) may be excluded from your gross income, which can affect your taxable income and rate the next time you file.
Additionally, HSA contributions may be able to be claimed as a deduction under certain circumstances. Talk to your tax advisor and see if your HSA contributions can be deducted from your yearly taxes.