Routing # 321076470

Health Savings Account (HSA)

Tax-advantaged1 funds to help you save on doctor visits, prescriptions, and more


What is a Health Savings Account (HSA) ?

An HSA is for individuals and families with High Deductible Health Plans. It is an IRA-like account that allows you to save for present and future health expenses. All account balances are interest-paying and federal tax-deductible. For 2024, individuals can contribute up to $4,150 to their HSA accounts and families can contribute up to $8,300.

Here’s how it works

1

Contribute

Contributions are made into the account by the individual or their employer and are limited to a maximum amount each year.

2

Save

The contributions are invested over time and can be used for qualified medical expenses, such as medical, dental, and vision care, as well as prescription drugs.

3

Withdraw

Qualified withdrawals are tax and penalty free at any time regardless of age or length the account has been open, and if used for qualified health care expenses.

An HSA provides easy options for contributions and withdrawals:

  • Fast and convenient access through HSA debit cards and HSA checks. Also available through a check withdrawal at any Patelco branch
  • Anyone can contribute to your HSA on your behalf, including employers and family
  • No minimum to open and no fee for the first year. ($2 monthly annual fee after year 1)
  • IRA holders are permitted to make a one-time transfer to their HSAs

Health Savings Accounts benefits

Tax savings

HSA delivers federal tax savings, tax-free earnings and more1

Flexibility

Use the funds to pay for current medical expenses or save for future qualified health needs

Tax-free interest growth

No “use it or lose it” rules with an HSA

Easy Access

Keep your HSA or move it between financial institutions if you change jobs

Health Savings Account (HSA) Rates

HSA Tiered Rates

Rates Effective 01/01/2020

Minimum BalanceAPY2RateDividends Paid
18389$0.000.050.05Monthly01/01/2020
18392$2,000.010.100.10Monthly01/01/2020
18398$3,500.010.250.25Monthly01/01/2020

Frequently Asked Questions

    You are eligible for HSA any calendar month if you:

    • are covered under an HDHP on the first day of such month;
    • are not also covered by any other health plan that is not an HDHP (with limited exceptions)
    • are not enrolled for benefits under Medicare (generally not yet age 65)
    • are not eligible to be claimed as a dependent on another person’s tax return

    Still not sure whether you qualify for an HSA? Call us at 800.358.8228.

    An HDHP is a High Deductible Health Plan is health insurance with a high minimum deductible for medical expenses that must be paid before insurance kicks in. In other words, your monthly premium is usually lower, but you pay more health costs yourself before the insurance company covers its share.
     
    High-deductible health plans and contribution limitations change annually to reflect cost-of-living increases.

    2024 HDHP Limits

    Plan Coverage Self Only Family
    Annual Deductible $1,600 $3,200
    Annual Deductible plus out of pocket expenses cannot exceed $8,050 $16,100
    Annual Contribution Limit $4,150 $8,300

    For 2024, annual catchup contributions are $1,000 for individuals 55 or older.

    Yes, HSAs are portable. You can transfer the assets in your HSA from another financial institution to Patelco.

    The maximum contribution amounts you can make to your HSA account (based on your coverage) are in the chart below. Please ensure that you meet the eligibility requirements to open an HSA account to contribute.
     
    High-deductible health plans and contribution limitations change annually to reflect cost-of-living increases.

    2024 HDHP Limits

    Plan Coverage Self Only Family
    Annual Deductible $1,600 $3,200
    Annual Deductible plus out of pocket expenses cannot exceed $8,050 $16,100
    Annual Contribution Limit $4,150 $8,300

    For 2024, annual catchup contributions are $1,000 for individuals 55 or older.

    Sole proprietors and others who are self-employed can have an HSA, and are, in fact, often ideal candidates for an HSA. In such situations, the business owner is both employer and employee. HSAs are often advantageous for the self–employed because:

    • high–deductible health insurance plans generally have modest premium costs, and may be an effective cost–containment mechanism
    • the self–employed individual is protected against potentially catastrophic healthcare expenses, and
    • the HSA may serve the dual purpose of providing for both medical and retirement expenses
    • Contributions are deductible from federal taxes up to the maximum allowable amount. Please consult your tax advisor for details.
    • Dividends earned are free from federal tax.
    • Qualified medical expense withdrawals are free from federal tax.
    • Unused HSA funds may be used for retirement: after reaching the age of 65, funds may be used for non-qualified expenses, penalty-free. Funds taken out of your HSA account during retirement will only be subject to income taxes, not penalties.
    • Upon death, HSA assets become the property of a named death beneficiary or estate. A spouse can treat the assets as his or her own HSA. Non-spouse death beneficiaries will need to report the assets as ordinary taxable income.
    • Some states allow tax-deductibility. Please consult your tax advisor for details.
Support a brighter financial future for your employees
Explore free services provided by Patelco at Work to boost employee financial health and enhance workplace benefits.
 
Patelco offers group servicing for our HSA accounts.

1 Consult your tax advisor about HSA tax advantages.

2 APY = Annual Percentage Yield

Compare

Up Arrow