Health Savings Accounts (HSAs)
Take Advantage of Tax Benefits While You Save for Medical Expenses
A Health Savings Account (HSA) gives you more flexibility and control over your health care costs. If you have a high deductible health plan (in 2010 at least $1,200 for an individual, $2,400 for a family), your employer can make pre-tax contributions on your behalf. Any other contributions you make are tax deductible. You will enjoy these benefits once your account is started:
- Save against high or unexpected medical bills.
- High insurance policy deductibles mean lower premiums.
- Receive dividends that are free from federal taxes (all earnings are tax deferred).
- You may contribute at any time during the year and the balance of your HSA will roll over year to year.
- It is your account. If you change jobs, it goes where you go.
- No income limitations or restrictions.
- No age limit.
Easy Access
RCU’s HSA is a special dividend bearing checking account, so you will have access via checks and cash withdrawals. All distributions/withdrawals are tax free if they are used for qualified medical expenses.
What is an HDHP?
An HDHP (high deductible health plan) is an insurance policy that meets certain dollar limits as shown in the table below.
| 2010-11 HDHP Limits* | ||||
| Year | Single Coverage |
Family Coverage |
||
| Minimum Deductible |
Maximum Out-of-Pocket |
Minimum Deductible |
Maximum Out-of-Pocket |
|
| 2010 | $1,200 | $5,950 | $2,400 | $11,900 |
| 2011 | $1,200 | $5,950 | $2,400 | $11,900 |
What are the HSA contribution rules?
The total amount you or your employer may contribute to an HSA for any taxable year is dependent upon whether you have individual or family coverage under a high deductible health plan (HDHP) as shown in the table below.
In addition to the standard HSA contribution limits shown in the table, if you have attained age 55 before the close of a taxable year, you may also contribute an additional amount known as a “catch-up” contribution.
| 2010 and 2011 HSA Contribution Limits* | |||
| Year | Single Coverage | Family Coverage | Over 55 Catch-Up Contributions |
| 2010 | $3,050 ($254.17) | $6,150 ($512.50) | $1,000 ($83.33) |
| 2011 | $3,050 ($254.17) | $6,150 ($512.50) ) | $1,000 ($83.33) |
Open An Account
To open an account, simply fill out the required forms below.
- HSA Application Packet (required)
- HSA Contribution Form
- HSA Direct Transfer Form
- HSA Rollover and Transfer Form
- HSA Beneficiary Designation/Changes Form
Submit completed forms at any branch or mail to:
Redwood Credit Union
P.O. Box 6104
Santa Rosa, CA 95406
You can also open an account by calling : 1 (800) 479-7928 or by visiting an RCU branch.
Learn More
- Health Savings Account Frequently Asked Questions (FAQs)
- HSA Brochure “Helping Control Health Care Costs”
- Individual Retirement Accounts (IRA) Enjoy tax benefits as you save for the future.
- More RCU Savings Accounts
Rates
Find out if you can benefit from an RCU health Savings Account. Contact us today: (800) 479-7928 or visit an RCU branch.
The information on this page is provided by BISYS Retirement Services and the IRS, and is not intended as tax advice. Please consult a tax professional.
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