Dynamic Federal Credit Union is proud to offer Health Savings Accounts (HSAs), providing a tax-advantaged way to save for medical expenses while enjoying exclusive member benefits. Whether you're preparing for future healthcare needs or managing current medical costs, an HSA from Dynamic FCU can help you take control of your financial wellness. 

Maximize Your Health Savings with Dynamic FCU HSA Accounts: Tax-Free Earnings and Easy Access

What Is A Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-advantaged savings account designed to help individuals save for medical expenses. HSAs are available to individuals covered by high deductible health plans (HDHPs) and offer significant tax benefits. Contributions to an HSA are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are not taxed. Additionally, HSA funds roll over year after year, meaning you don’t lose unspent funds at the end of the year. 

What Are The Benefits Of An HSA?

• You can deduct contributions that you make to your HSA on your federal income tax return.
• Any HSA contributions made through payroll deduction reduce your federal income tax liability and Social Security and Medicare taxes.
• Earnings in your HSA grow tax-deferred. 
• HSA distributions that you use to pay for qualified medical expenses are tax-free.
• You are in charge of your HSA assets.
• You can withdraw money from your HSA any time. 
• You can carry over your HSA balance from year to year. 
• You own the HSA and can take it with you even if you change health plans or employers. 
  

Who Is Eligible For An HSA? 

To be eligible to have an HSA, you must be covered under an HSA-compatible High Deductible Health Plan (HDHP). An HDHP generally requires that you pay out of pocket for medical expenses incurred (excluding certain preventive care expenses) until your deductible is met. Plan coverage kicks in after that.

An HDHP may be HSA-compatible if it satisfies the IRS’ annual deductible and out-of-pocket expense requirements. But the rules that define an HSA-compatible HDHP can be complicated, so check with your insurance provider or employer to see if your health plan is HSA-compatible.

How Do You Contribute To An HSA? 

If you’re eligible to contribute to an HSA for the entire year, you can contribute up to the annual statutory limit for the type of HDHP coverage you have (self-only or family). If you’re age 55 or older, you can make an additional “catch-up” contribution of up to $1,000. If you are not eligible for the entire year, you can still contribute the maximum contribution amount if you remain HSA-eligible throughout a 13-month “testing period.” If you do not remain HSA-eligible during the testing period, then the annual limit is prorated to the number of months that you are eligible. 

What Kinds Of Health Expenses Qualify? 

You will not have to pay income tax or penalty tax on the money withdrawn from your HSA for qualified medical expenses. Qualified medical expenses generally include most medical, dental, and vision care expenses not covered by insurance that are incurred by you, your spouse, or your dependents after your HSA is opened. IRS Publication 502, Medical and Dental Expenses, contains a partial list of qualified medical expenses. Visit: https://www.irs.gov/forms-pubs/about-publication-502

HSA distributions that are not used for qualified medical expenses are subject to ordinary income tax and, if taken before age 65, a 20 percent penalty tax (unless the HSA assets are distributed after you become disabled or die).

You may want to visit with a competent tax advisor before making HSA contributions or taking HSA distributions. 

Why Choose A Health Savings Account (HSA) At Dynamic FCU?

Unlike other financial institutions that may charge fees or offer limited benefits, Dynamic FCU is committed to maximizing your HSA’s potential. We provide high dividend interest rates, free HSA debit cards, free first box of HSA checks, and no monthly HSA service fees—ensuring you keep more of your money for healthcare expenses. If you already have an HSA with another financial institution, it may be to your benefit to transfer it and maximize your benefits with Dynamic FCU! For the latest HSA rates visit: https://www.dynamicfcu.com/accounts/save/health-savings-accounts

Health Savings Checking Account

Rates as of 12/31/2023

Members should call the credit union to verify rates.

Contact your credit union to find out if there are any fees on these accounts that could reduce your earnings.

Click here for a list of our current rates.

Your money is federally insured to at least $250,000 and backed by the full faith of the United States Government through the National Credit Union Administration.