Ensure a Healthy Future with a Health Savings Account (HSA)
With an Alliant Health Savings Account, you can deposit funds to pay for current or future medical expenses. Funds used for qualified medical expenses, including dividends, are tax-free. Unused funds remain in the HSA year after year, earning tax-deferred dividends.
- High dividend rate of 0.65% APY with an average daily balance of $100 or more
- Easy access to funds via a free VISA® HSA Debit Card or HSA checks
- Free HSA checks
- No fees for account opening, maintenance or transactions
- No initial deposit or minimum balance requirement
Free 24/7 account access:
- Personal customer service 800-328-1935
- Alliant Online Banking
- Self Service Telephone (SST) 800-482-5328
HSA Investment Program*
In addition to maintaining a standard dividend bearing Health Savings Account (HSA), Alliant members who are looking for an option to potentially grow their HSA funds can choose to invest through Self Managed Investing, an online, self-directed investment tool sponsored by Alliant Credit Union. Learn More
*Money market and mutual fund advisory services and products are offered through SaveDaily.com, Inc. an SEC registered investment advisor. Clearing, custody or other brokerage services may be provided by UMB Financial Services, Inc., member FINRA, SIPC, National Financial Services LLC, or Fidelity Brokerage Services LLC, Members NYSE, SIPC. Investments you make through SaveDaily.com, Inc. and its affiliates are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Alliant Credit Union has contracted with SaveDaily, Inc. and its affiliates to make money market and mutual fund investment products and services available to credit union members.
APY = Annual Percentage Yield.
To open an Alliant HSA you must be:
- 18 years of age or older
- A member of Alliant and have an Alliant Savings account with a minimum balance of $5
- Must be enrolled in a qualified High Deductible Health Plan (HDHP) to make contributions. Contact your Health Insurer or employer to confirm your coverage.
- If not enrolled in a HDHP you are still qualified to roll over or transfer funds from your current HSA
Making contributions to your Alliant HSA:
- The contribution limits for tax year 2014 are $6,550 for a family HSA and $3,300 for an individual HSA.
- You may make tax-free contributions through direct deposit of payroll funds, thereby reducing your federal tax liability
- Your employer may also make tax-free contributions to your HSA
- Deposits not made by pre-tax payroll deductions or an employer may be used as a deduction on your federal income tax return
- You must be covered by a qualified High Deductible Health Plan and have no other medical insurance (except some specialized insurances, such as specific injury or accident, dental, vision or long term care)
- You may not be enrolled in Medicare
- You have not received VA medical services within the previous three months
- You may not be claimed as a dependent on someone else's tax return
- Dental treatment, eye exams, eyeglasses and contact lenses
- Out-of-pocket expense, such as deductibles, coinsurance and co-payments
- Prescription drugs
- Qualified long-term care services and insurance
- COBRA Insurance
- Medicare Premiums once there is no longer HDHP coverage (not Medigap Insurance premiums)
- Retiree health expenses not covered by Medicare if 65 years or older
- Hearing Aids
To get a complete list of qualified medical expenses download the IRS Medical and Dental Expenses (PDF) publication.
Frequently Asked Questions
Where do I send checks for deposit to my Alliant HSA Account?
Alliant Credit Union
Attn: IRA/HSA Dept.
P.O. Box 66945
Chicago, IL 60666-0945
Alliant Credit Union
Attn: IRA/HSA Dept.
11545 W. Touhy Avenue
Chicago, IL 60666
How do I know if the HDHP I have qualifies me for an HSA?
Check with your insurance provider or employer to ensure you are covered by a qualified High Deductible Health Plan (HDHP).
Will an HSA be a good investment for me?
Absolutely. Here are several reasons why:
- HSAs can be a great retirement savings tool, particularly if your medical expenses are low. Note: Nearly 75% of U.S. residents spend less than $500 a year in medical expenses, according to Information Strategies, an HSA research company.
- Even if you pay your medical bills with HSA funds, the HDHP deductible is typically less than the HSA contribution limits set by the IRS. Plus, any funds left in your HSA will earn dividends tax-free.
- Many employers make contributions to their employees’ HSAs.
- Funds used for non-medical expenses when you reach age 65 or become disabled are subject only to income taxes and will not be assessed a penalty.
- You also have the option to invest a portion of your HSA into mutual funds.*
Why should I consider starting an HSA?
With today’s rising medical costs, an Alliant Health Savings Account is a great way to ensure that any “gaps” in your medical expenses not covered by insurance are covered. An HSA is specifically designed for this purpose. There are many other benefits too:
- Pre-tax contributions made via payroll deductions will reduce your federal tax liability. Contributions and dividends are not taxable if used for qualified medical expenses. If you make contributions with after-tax dollars, they are deductible on your federal income tax return.
- It’s a means to save for your future medical expenses.
- Your funds are not lost at year-end. In fact, unused funds remain in your account year after year, earning tax-deferred dividends.
- You control the way your funds are spent and invested.
- Your funds are portable — they remain yours even if you end participation in an HDHP. When your participation in an HDHP ends, you can no longer make annual contributions. However, the funds in your HSA remain yours and are available to pay for qualified medical expenses. You can also move your HSA from one financial institution to another.
- You may qualify for both an HSA and a FSA (Flexible Spending Account). However, you cannot "double dip" — you cannot be reimbursed by both accounts for the same expense.
What are the tax advantages of an HSA?
You and your employer can make tax-free contributions to your HSA, which can help you save money in the long run. Here are some other tax benefits:
- Contributions may be made with pre-tax dollars.
- Contributions made with after-tax dollars are deductible on your federal income tax return.
- Earnings compound tax-deferred.
- Funds, including earnings used for qualified medical expenses, are not taxable.
What types of medical and healthcare expenses can I use the funds in an HSA for?
Under federal tax law, HSA funds can only be used to pay for out-of-pocket “qualified medical expenses.” This includes most medical care and services, dental treatments such as fillings, braces and extractions, eye exams, eye glasses and contact lenses, prescriptions and over-the-counter drugs such as aspirin. Using HSA funds to pay for a non-qualified medical expense is taxable as income and subject to an additional 20% penalty by the IRS. For a complete list of qualified medical expenses view the List of qualified HSA expenses (PDF) from the IRS.
Can I use my HSA funds to pay for the medical expenses of my spouse and dependents, even if they're not covered by an HDHP?
Yes. You may always use HSA funds to pay the qualified medical expenses of yourself, your spouse and your dependents.
How do I return funds to my HSA?
If you wrote a check or used your HSA debit card for a non-qualified medical expense or received reimbursement from your insurance company or physician for a medical bill already paid from your HSA, please use the Return of HSA Distribution form to return the funds to your HSA and avoid tax penalties.
How can I move funds from my current HSA to an Alliant HSA account?
You can do a rollover of funds or a direct transfer of funds. Write a check from your current HSA to be deposited as a rollover contribution to your Alliant HSA. (Your withdrawal will be reported as a normal distribution and the deposit to your Alliant HSA will be reported to the IRS as a rollover contribution.) You’re allowed only one HSA rollover every 365 days. And you must complete that rollover within 60 days of withdrawing your HSA funds from the other institution. You must also complete, sign and return an Alliant HSA Rollover Authorization form. Or if you do not want the withdrawal and deposit reported to the IRS, funds can be sent as a direct transfer from your current HSA custodian by completing our Request to Transfer HSA to an Alliant HSA form and forwarding it to your current HSA custodian. Your current custodian will forward your funds directly into your new Alliant HSA account. There are no restrictions on the number of HSA direct transfers.
Can I roll over funds from my FSA or my Traditional IRA?
Yes. But, you can complete each of these transactions one-time only for life. You can contribute funds from your IRA to your HSA, up to the IRS limit for your type of HDHP coverage. You can rollover funds from your FSA to your HSA, but there's a rollover limit. You can only transfer the amount that was in your FSA as of September 21, 2006, or the amount that is in your FSA on the date of the transfer – and that limit is whichever amount is less. For instance, if you had $250 in your FSA as of September 21, 2006, and at the end of the year have $1,000 in the account, then the maximum you can rollover to an HSA is $250.
What can I pay for with my VISA HSA Debit Card or HSA checks?
Your HSA VISA Debit Card and HSA checks should only be used to make payments from your Alliant HSA for qualified medical expenses.
The HSA VISA Debit Card can also be used at an ATM to reimburse yourself for an out-of-pocket qualified medical expense. Note: Caution must be used because you cannot take out the exact amount of the medical expense at the ATM. HSA VISA Debit Card cannot be used at ATMs to make deposits into an HSA. If you use your HSA VISA Debit Card to pay for non-qualified medical expenses, the expense is taxable as income and subject to an additional 20% penalty by the IRS.
HSA checks can also be used to reimburse yourself for an out-of-pocket qualified medical expense. Note: HSA checks cannot be used to make deposits into an HSA. If you use your HSA checks to pay for non-qualified medical expenses, the expense is taxable as income and subject to an additional 20% penalty by the IRS.
Can I use Alliant’s online bill pay with my Alliant HSA?
Yes, you can use free online bill pay to make a payment from your Alliant HSA for qualified medical expenses.
How can I make contributions to my HSA?
You can transfer funds from your Alliant savings or checking account to your HSA for current year contributions through Alliant Online Banking, or a check can be mailed along with an HSA Deposit Ticket (prior year contributions are allowed January 1 - April 15 each year, with either a written authorization or by using Alliant Online Banking). Current year contributions can also be made through your employer with payroll deductions sent via ACH to your HSA, if available. Learn more
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