Health Savings Accounts (HSA)
Healthcare costs are rising. Stay in control with an HSA.
Why open an HSA?
With a Health Savings account, the money for your family’s healthcare is protected from taxes, both when you save it and when you spend it.
An HSA not only helps you get a handle on medical expenses, but earns interest on balances that carry over from year to year.
Your Spirit of Alaska HSA checking account will come with a customized debit card, a high point-of-sale limit, and no statement or maintenance fees.
A tax-advantaged checking account to use for qualified healthcare costs
- Easily access funds with a customized debit card
- Qualified deposits (contributions) are tax-deductible
- Qualified spending (distributions) are tax-free
- The more you save, the more interest you earn with tiered rates.
- No statement or maintenance fees
Not everyone is eligible to open a Health Savings Account.
First, take a look at your health insurance coverage. To contribute to an HSA, you must be covered under an HSA-eligible high deductible health plan (HDHP).
- You cannot be covered by another health plan (with limited exceptions)
- You cannot be enrolled in Medicare
- Finally, you cannot be eligible to be claimed as a dependent on another person’s tax return
If you are out on your own, and are enrolled in a high-deductible health care plan, an HSA can be a great way to meet your deductible tax-free and save for unexpected medical expenses.
Manage it in one place
Simplify your life by managing your finances in one trusted and familiar credit union, while earning competitive interest on balances.
Contribute what you need to cover medical expenses
Contributions to the account may be made through:
- Deposits in person at any branch
- Setting up an ACH transaction
- Payroll deduction
- Requests to our operations department to transfer funds. Requests can be made by sending us a message through the online banking system.
Tools for keeping records
Account holders are responsible for keeping records and receipts for all medical expenses paid using their HSA account. To make this process as simple as possible, we provide several tools through online banking:
- e-Statements – view every statement generated for your account
- Records of your debit card transactions
- Electronic receipt records of contributions
Spirit of Alaska’s Health Savings Account is a limited checking account product, with a debit card issued to access funds in the account.
Due to the tax structure of the account, there are limitations to accessing your funds, which include:
- No paper check usage
- No transfers into the account through online banking
- No overdraft protection
- No Bill Pay checks issued from the account
- $5000 point-of-sale limit
- No ATM access to cash
Check out the FAQ for more detailed information on our HSA account.
Health Savings Account Tiers Min. Opening Bal. Min. Bal. to Earn Dividends Dividend Rate APY* Tier 1 $0 $0.01 to $999.99 .10% .10% Tier 2 $1,000.00 to $9,999.99 .45% .45% Tier 3 $10,000.00 to $24,999.99 .75% .75% Tier 4 $25,000.00+ 1.00% 1.01%
*Annual Percentage Yield. Refer to our Pricing Guide (PDF) for all fees. Rates are subject to change at any time. Current as of 17 January 2020.
Frequently Asked Questions
Am I eligible to open an HSA account?
To open a Health Savings Account, you must meet the following qualifications:
- Be enrolled in an HSA-eligible High Deductible Health Plan (HDHP). Inquire with your health insurance provider if you are unsure if you are enrolled in a HDHP.
- Are not covered by another health plan (some exceptions apply)
- Are not enrolled in Medicare
- Are not eligible to be claimed as a dependent on another person’s tax return
HSA eligibility is determined as of the first day of each month.
How much can I contribute (deposit) every year to my HSA?
As of 2019, yearly HSA contribution limits are as follows:
Self Only Coverage
under age 55 [ $3500] over age 55 [$4500]
under age 55 [$7000] over age 55 [$8000]
Spirit of Alaska will monitor contribution amounts, and will verify that contributions will not go over annual limits.
Can I deduct HSA contributions from my taxable income?
Yes! This is a major benefit of saving for health expenses in an HSA account. As long as you cannot be claimed as a dependent on another person’s tax return, you can deduct your personal HSA contributions (if your employer has contributed money to the account as a part of their health care plan, those contributions are not deductible. Bummer.)
What can I spend the money on without tax penalties?
When it’s time to take money out of your HSA, prepare for a smooth landing. Simply use the money for qualified medical expenses. This generally includes most medical, dental, and vision care expenses that are incurred by either you, your spouse, or any dependents.
HSA distributions not used for qualified medical expenses are subject to ordinary income tax, and if taken before age 65, a 20% IRS penalty tax (excluding a death or disability).
Be sure to consult with a competent tax advisor regarding your HSA deductions and how to claim tax-free HSA distributions.
Spirit of Alaska does not monitor how you spend the money from your HSA checking account.
Can I combine 2 HSA accounts?
Combining 2 accounts is a rollover. Rollovers are allowed once per year. Funds must be deposited within 60-days of removal of funds from the other account.
- Am I eligible to open an HSA account?