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Health Savings Accounts

Healthcare is complicated enough, a Health Savings Account (HSA) from Commonwealth Credit Union makes it easy to pay for, manage, and track your healthcare expenses.

A healthy dose of savings for your wellness journey.


If you don't have a Health Savings Account (HSA) and qualify for one, you might be missing out. With a Commonwealth Credit Union HSA, you'll get easy access to manage your HSA eligible purchases and transactions with:
  • No monthly service fees
  • No minimum opening deposit
  • Unlimited withdrawals
  • No fee debit card
  • Online and Mobile Banking with Bill Pay
  • Dividends paid and compounded monthly based on your average daily balance
Plus, an HSA provides many benefits that could help offset the growing cost of healthcare. Consult with your tax advisor regarding tax deductibility.
  • You may be able to deduct contributions that you make to your HSA on your federal income tax return.
  • Any HSA contributions made through payroll deduction may reduce your federal income tax liability, 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.

How do I open an HSA?

HSAs can be opened at any Commonwealth Credit Union branch. To learn more, call 800.228.6420 or 502.564.4775.

Frequently Asked Questions

To be eligible to have a health savings account, 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.

HSA-Compatible HDHP Amounts*

Year Self-only coverage Family coverage
Minimum annual deductible 2020 $1,400 $2,800

2021 $1,400 $2,800
Maximum out-of-pocket expenses 2020 $6,900 $13,800

2021 $7,000 $14,000
NOTE: Self-only coverage covers only an individual. Family coverage covers an individual and a spouse and/or one or more dependents.

In addition to being covered under an HSA-compatible HDHP, you
  • cannot be covered by a non-HDHP (with limited exceptions),
  • cannot be enrolled in Medicare, and
  • cannot be 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.

*Subject to annual cost-of-living adjustments.

Health Savings Accounts Brochure, 2020. Ascensus, LLC. 651.pdf (5/2020)
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.

HSA Contribution Limits*
Year Self-only coverage If age 55 or older Family coverage If age 55 or older
2020 $3,550 $4,550 $7,100 $8,100
2021 $3,600 $4,600 $7,200 $8,200
If both you and your spouse have family coverage and are HSA-eligible, one annual family contribution limit applies to both of you and may be split between your HSAs in any way you choose. For example, for 2020, you could contribute $3,550 to your HSA and your spouse could contribute $3,550 to his HSA, for a total of $7,100, the 2020 family contribution limit. Note that if both you and your spouse are each eligible for a catch-up contribution, the catch-up amounts cannot be combined into one HSA.

Contributions can be made in any amount throughout the year until your tax return due date (generally April 15) for that year, not to exceed your annual limit. Any contributions made on your behalf by your employer or anyone else are included in your one annual limit.

As long as you cannot be claimed as a dependent on another person's tax return, you can deduct your own–yourself and your spouse–HSA contributions (not those made by your employer).

*Subject to annual cost-of-living adjustments.

Health Savings Accounts Brochure, 2020. Ascensus, LLC. 651.pdf (5/2020)
You will not have to pay income tax or penalty tax on the money withdrawn from your HSA for qualified medical expenses.

Health Savings Accounts Brochure, 2020. Ascensus, LLC. 651.pdf (5/2020)
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.

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.

Health Savings Accounts Brochure, 2020. Ascensus, LLC. 651.pdf (5/2020)
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Commonwealth Credit Union is a full-service, not-for-profit financial institution with branches throughout Kentucky, serving as the official credit union of the University of Louisville.