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What is a Health Savings Account (HSA)?

Medical expenses can put a strain on your savings account, so how do you do to prepare? Learn about a Health Savings Account.

What is an HSA?

A Health Savings Account (HSA) is a tax-advantaged savings account that you can use to pay for a wide variety of health expenses. An HSA allows you to save for future medical expenses — while earning steady interest in a secure savings account that offers you flexibility, tax advantages and convenient access to your funds. It’s a great way to save for both day-to-day and future medical costs.

Expenses include:

  • Doctor’s office visits
  • Prescriptions
  • Vision expenses
  • Dental expenses
  • Long-term care insurance

HSA Eligibility.

You must meet four requirements to be eligible for an HSA:

  1. Be covered by a High Deductible Health Plan (HDHP)
  2. Not be covered by another type of insurance (unless it’s a dental or vision plan; or another qualified HDHP)
  3. Not be enrolled in Medicare
  4. Not be claimed as a dependent on another person’s tax return.

HSA Advantages.

  • You own it. The money in your HSA is yours forever. No “spend it or lose it” requirements.
  • Convenient access. Alltru Credit Union Health Savings Accounts include a free, dedicated debit card, and easy 24/7 access to your account through Online and Mobile Banking.
  • Tax advantages. You put money in tax-free. Your deduction will be taken out of your paycheck as a pre-tax deduction.
  • Earn interest on your money or even invest it. Any gains you make are tax-free.
  • Hassle-free withdrawal. You can withdraw your money at any point tax-free, so long as it is used for qualified medical expenses.

How do I access my HSA funds?

We provide multiple ways to access your funds. Use an HSA Alltru Visa debit card, access your funds through online banking, or simply stop by one of our branches to withdraw cash in person. It’s that easy!


HSA dollars fund a range of services.

You can withdraw the money penalty-free at any time and use it to cover copayments, coinsurance, as well as a variety of medical costs. Unlike an employer’s flexible spending account that must include a “use it or lose it” rule, you can roll over money you save in an HSA from year to year. HSAs have the potential to build large balances over years of contributions and some strong investment gains. That means participants could be able to pay for their own health care in their later years, when it is needed most. As for non-medical expenses, you have the option to use your HSA funds but they will be subject to income tax and a 20% IRS penalty (Penalty does not apply after age 65).

If you have an HSA at another financial institution, no worries! HSA owners may move their HSA assets to another financial organization, even if the contributions were made by their employers.

If you believe a Health Savings Account is a good option to save for health expenses for you and your family, we’d love to help. Contact us anytime at (636) 916-8300 to talk through an HSA plan or visit our website for more information.