Health Savings Account

[ 0 ] March 12, 2015 |

In January 2006, IAACU began offering Health Savings Accounts to IAACU members. By adding this product, IAA Credit Union provides additional tax-deferred savings to its members, without binding them to a particular health plan provider. Members, who have already chosen a high-deductible health plan from any number of providers, can establish an HSA at IAACU to provide tax savings and regular disbursements for qualified medical expenses.

Who is eligible to establish an HSA?

To be eligible, IAA Credit Union members:

  • Must be covered under a high-deductible health plan (HDHP),
  • Cannot be covered by another health plan that is not considered an HDHP,
  • Cannot be enrolled in Medicare, and
  • Covered under an HDHP on first day of the month which a contribution is made.

Additionally, dependent children cannot have their own HSAs. While these are general rules, if there are questions, individuals should consult their tax advisors or their insurance providers to determine their plan’s eligibility as an HDHP.

Individuals (self only) electing to participate in an HSA must be insured by a health plan that has a $1,300 minimum deductible with annual out-of-pocket expenses not to exceed $6,450.

Doctor explaining diagnosis to her female patient

Families electing to participate in an HSA must be insured by a family health plan with a minimum deductible of $2,600 and annual out-of-pocket expenses not exceeding $12,900.

How do I establish an HSA at IAA Credit Union?

First, if not already an IAA Credit Union member, an individual must be within the IAA Credit Union field of membership, which includes employees and direct family members. In addition, COUNTRY policy holders and Illinois Farm Bureau members are eligible for IAA Credit Union membership. A membership agreement can be requested by calling (800) 676-2541 or fill it out here.

Second, request an HSA application from IAACU by emailing newaccts@iaacu.org. The application includes the IRS disclosures for eligibility, withdrawal qualification and account owner rights.

For more information or any questions you can call in or visit our website!

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