Health Savings Accounts - HSAs
Pay for current health expenses and save for future medical needs on a tax-free basis*. With a Health Savings Account (HSA), you decide how to spend and how to invest the money in your HSA.
- Earn dividends on balances of $50 and up
- Easily transfer money into your HSA with Digital Banking or our CCU Mobile App
Cover your health expenses.
Our Health Savings Account is a flexible, convenient way for you to manage your healthcare expenses. Paired with a qualified high-deductible health insurance plan, this account provides more ownership and control over healthcare expenses. You can decide when and how much to contribute. Contributions and payments are tax-deductible up to the limits set forth by the federal government. Plus, your HSA Checking account comes with a Visa® Debit Card for easy payment, and a dividend is paid each month when minimum balance requirements are met.
HSA Checking and Savings
Who is an HSA good for? | People with a high-deductible health plan (HDHP) who want to pay for qualified medical expenses tax-free |
Minimum Opening Deposit | $50 |
Dividend Minimum Balance | $50 |
Eligibility
HSAs are available to individuals who are covered under a qualified high-deductible health plan (HDHP) that meets the deductibles defined by the IRS. Not every HDHP enables a person to open an HSA, and individuals should check yearly with their insurance provider to verify their insurance meets HSA requirements. Additionally, individuals must not be enrolled in other general medical insurance coverage or Medicare, and they may not be claimed as a dependent on another person’s tax return (but may be a spouse filing jointly).
Making Contributions
It's as easy and convenient as making deposits.
- Use payroll deduction
- Visit any of our credit union branches
- Use Digital Banking or 24-Hour Telephone Banking to transfer funds from your other accounts
- Set up recurring automatic transfers from another account in Digital Banking
- Send in a check by mail
Accessing Funds
To pay for qualified medical expenses, simply use your HSA Visa® debit card, online bill payment service, or write a check from your HSA Checking. Your payments are tax-free when used to pay for a qualified medical expense, and it is your responsibility to determine if an expense is qualified (consult a qualified tax professional). You can keep track of your balances online via Digital Banking, through 24-Hour Telephone Banking, or by calling (800) 334-8788.
If you pay an expense from your HSA and later discover it is not a qualified medical expense, notify us immediately. To avoid penalties, you will need to deposit the funds back into your Health Savings Account no later than April 15 or the tax filing deadline of the year following the payment. If you miss this deadline, you must claim the amount as "income" on your tax return and are subject to an IRS tax penalty if you are under age 65.
Employer Contributions
To allow your employer to contribute to your HSA, simply follow these steps:
- Give your employer our Routing Number (322078464) and your HSA account number
- Remember that contributions made by you or your employer are subject to IRS limits
- Be sure to track your total contributions so you do not exceed the limits defined by law
- Ask your employer or a qualified tax advisor for further details
IRS Reporting
We will mail your IRS Form 1099SA by January 31, following the end of the previous tax year. This form shows the total distributions (payments) made from your HSA during the tax year.
All contributions into the HSA are reported to the IRS as "current year" contributions unless you instruct us differently. "Prior year" contributions can be made by visiting a branch or by calling us. You have until April 15, or the tax-filing deadline, to make all your HSA contributions for the prior tax year. We will mail you IRS Form 5498SA, reflecting total prior tax-year contributions, by May 31.
Rules to Remember
- If you do not have enough for a payment, the credit union cannot cover you as a courtesy, this is strictly prohibited by the IRS
- For proper tax reporting, ATM transactions are not permitted
Frequently Asked Questions
A credit union HSA is a tax-advantaged savings account designed to help members save for medical expenses. When you open a health savings account at a credit union, you’re getting a specialized account that works alongside a high-deductible health insurance plan (HDHP).
Credit unions often provide these accounts with more competitive interest rates than banks, making them an attractive option for healthcare savings.
Credit union HSA accounts typically come with personalized service and member-focused features. Your HSA functions as a dedicated medical expense fund, allowing you to set aside pre-tax dollars for everything from routine doctor visits to unexpected medical costs. This arrangement helps you build healthcare savings while potentially reducing your annual tax burden.
An HSA from a credit union allows you to contribute pre-tax dollars up to annual limits set by the IRS. For 2025, you can contribute up to $4,300, while families can save up to $8,550. If you’re 55 or older, you can make additional catch-up contributions of $1,000 annually.
The money you deposit grows tax-free. Then, when you use the funds for qualified medical expenses, you won’t pay taxes on withdrawals. This triple tax advantage makes HSAs a powerful tool for healthcare spending and long-term savings. Many members find that creating a budget that includes regular HSA contributions helps them maintain consistent healthcare savings.
Your credit union HSA can cover a wide range of medical expenses, including:
- Deductibles and copayments
- Prescription medications
- Dental and vision care
- Medical equipment and supplies
- Mental health services
- Some over-the-counter medications
Understanding how to save money using your HSA from a credit union can significantly impact your long-term financial health. Many credit unions offer financial counseling to help members maximize their HSA benefits and integrate them into their broader financial strategy.
You can take money out of your HSA at any time, but the tax implications vary depending on how you use the funds. When you withdraw funds for medical costs, the distribution is tax-free. However, if you use the money for non-medical purposes before age 65, you’ll pay income tax plus a 20% penalty.
After age 65, you can withdraw health savings account funds for any purpose, paying only regular income tax on non-medical withdrawals — similar to a traditional IRA. This flexibility makes an HSA an excellent complement to your retirement planning, as it can serve as a healthcare fund and a supplemental retirement account.
Wondering whether you’re saving enough for retirement? Try our retirement saving calculator.
Credit union HSA accounts often come with distinct advantages over those offered by traditional banks. As member-owned institutions, the benefits of a credit union include the following:
- Lower or no monthly maintenance fees
- Higher interest rates on savings
- More personalized customer service
- Local branch access for face-to-face assistance
- Online and mobile banking tools
- Educational resources and financial guidance
- Integration with other credit union services
Many credit unions also offer investment options for the money in an HSA once your account reaches a certain threshold, allowing you to potentially grow your healthcare savings more aggressively over time. This feature can be particularly valuable for members looking to build long-term health savings while managing current medical expenses.
Opening an HSA with a credit union involves several steps:
First, verify that you’re eligible. You must:
- Be enrolled in an HDHP
- Not be enrolled in Medicare
- Not be a dependent on another person’s tax returns
- Not have other health coverage that isn’t an HDHP
Next, gather the required documentation:
- Government-issued photo ID
- Social Security number
- Initial deposit funds
- Basic personal information
Many credit unions allow you to start your application online, but you may need to visit a branch to complete the process. During setup, you’ll choose your preferred deposit methods and receive information about accessing your account.
Our Health Savings Account at California Credit Union is a flexible, convenient way for you to manage your healthcare expenses. Plus, your HSA Checking account comes with a Visa®Debit Card for easy payment, and a dividend is paid each month when minimum balance requirements are met.
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Terms and Conditions
Programs (including but not limited to fees, rates, and features) are subject to change without notice. After the account is opened, dividend rate and APY may change at California Credit Union’s discretion. Fees may reduce earnings.
* Please consult a tax advisor for additional tax information related to Health Savings Accounts. IRS Publication 969 – Health Savings Accounts and other Tax Favored Health Plans.
