Concerned about paying your out-of-pocket medical costs?
Then consider opening a Health Savings Account, a special account to cover your share of medical costs when your only insurance option is a high-deductible health insurance plan.
What is a Health Savings Account?
A Health Savings Account (HSA) is a tax-advantaged savings account that offers a way for members to pay for current health expenses and to save for future qualified health expenses. You must be covered by a high deductible health plan (HDHP) to take advantage of an HSA.
Who can contribute to my HSA?
If you meet the eligibility requirements for an HSA, you, your employer, and your family members may contribute to your HSA.* *Contributions, other than employer contributions, are deductible on the eligible individual’s tax return.
How much can I contribute?
Self-Only Contribution Limit for 2026
- Standard Limit: $4,400
- Catch-up* Limit: $1,000
Family Contribution Limit for 2026
- Standard Limit: $8,750
- Catch-up* Limit: $1,000
Self-Only Contribution Limit for 2025
- Standard Limit: $4,300
- Catch-up* Limit: $1,000
- Standard Limit: $8,550
- Catch-up* Limit: $1,000
*Catch-up contributions are available for those who have reached age 55 by the end of their taxable year but have not reached age 65.
HSA Savings Accounts earn dividends. View Rates.
Key Benefits of an HSA
It Has Triple Tax Advantages
HSA contributions may reduce taxable income. Earnings, such as interest or dividends, grow tax-free. Withdrawals for qualified medical expenses are not taxed.
It’s Not a Use-it-or-Lose-it
Funds do not need to be used in the same year they are contributed. Unused money rolls over year to year and remains available for future qualified medical expenses.
It’s Portable
Your HSA belongs to you and stays with you even if you change jobs or health plans.
It’s Like Having a Retirement Account
After age 65, HSA funds may be withdrawn for any purpose. Withdrawals for non-medical expenses are subject to taxes, while qualified medical expenses remain tax-free. Consult a tax or financial professional for guidance.
What is a High Deductible Health Plan?
A high deductible health plan (HDHP) is a health insurance plan with a higher deductible than a traditional plan, typically offering lower monthly premiums. An HSA can help cover your deductible and other qualified medical expenses.
Why Choose an HSA through Mid American Credit Union?
No Monthly or Set-Up Fees
As a not-for-profit financial institution, Mid American Credit Union focuses on serving members’ needs. That’s why our HSAs have no set-up fees and no monthly fees. Making health care related payments is easy with Mid American’s HSA VISA Debit Card. Pay anywhere VISA is accepted. Plus, our monthly statements will help keep your account organized for tax purposes.
Earn Dividends on Deposits
HSA savings accounts and certificates earn dividends at the same rates as our regular savings accounts and certificates. Dividends are not paid on HSA checking accounts.
Online Account Management & Online Bill Pay
Managing your HSA is easier online, and you can pay medical bills with our online Bill Payer.
Local Accessibility
Whether at any of our many local branches or your workplace, we are always here to help you with your HSA needs.
A Mid American HSA Includes:
- No set-up fee
- No monthly fee
- VISA debit card
Charges, Fees, and Minimum Balance
Is there a charge to move HSA funds from another account?
No, there is not a charge to move HSA funds from another account.
Is there a charge to employees for their HSA funds? Is there a minimum balance?
HSA accounts do not have a minimum balance requirement, as long as there is at least one deposit or withdrawal per year to avoid dormant fees. The prime savings linked to the HSA account does require a $5 minimum balance. We do not charge standard administrative fees for the HSA account. However, if we are provided an incorrect address, a bad address fee could be assigned, as well as the possibility of a dormant fee.
What Happens to My HSA in the Event of My Death?
Spouse Beneficiary
If your spouse is the beneficiary of your HSA, the HSA becomes his/her HSA.
Non-Spouse Beneficiary
If your beneficiary is not your spouse, the HSA ceases to be an HSA as of the date of your death and will be included in the beneficiary’s gross income for the year of death.
What are Qualified Medical Expenses?
The Internal Revenue Service provides documentation about what constitutes qualified medical expenses (see Publication 502, Medical and Dental Expenses at www.irs.gov). Qualified medical expenses that may be eligible for reimbursements through your HSA as long as they are not reimbursed through insurance or other sources.