Get the upper hand on life's surprises.
Let’s face it, the cost of healthcare is high but don’t put your well-being on the back burner if medical expenses keep you up at night. A CoastHills Health Savings Account (HSA) is an easy way to save for qualified medical expenses, including doctor visits, prescriptions and more.
Whether you're planning for the future or for the now, a CoastHills Health Savings Account can prepare you for some of life's surprises.
Like an Individual Retirement Account (IRA), HSAs are savings accounts that let you set aside pre-tax or tax-deductible funds to pay for qualified medical expenses. Account balances earn dividends and access to your funds is easy with a CoastHills HSA Visa debit card or CoastHills HSA checks.
To qualify for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP) as your only health insurance plan, and you must not be eligible for Medicare or be claimed as a dependent on someone else’s tax return. However, not all HDHP plans qualify for HSAs so be sure to check with the insurer of your plan that it is “HSA-eligible” before you buy.
HSA eligibility is determined as of the first day of each month.
While withdrawals from your HSA are tax-free, the government only allows this tax advantage if you use your HSA funds for qualified medical expenses. This includes deductibles, copays, prescriptions, imaging, medical services, equipment, and supplies. Some generally eligible expenses also include hearing aids, counseling, chiropractic services, eyeglasses, physical therapy and more. For the most up-to-date list, please visit IRS.gov.
With an HSA, you can get triple tax benefits* where, your contributions are tax-deductible, your funds grow tax-deferred, and withdrawals aren’t taxed when used for qualified medical expenses. Plus, use your funds to help cover the medical expenses of anyone you claim on your taxes, even if they aren’t covered under your health insurance plan. A great way to plan for unexpected medical expenses for the whole family.
Another great benefit is that you don’t have to spend the money, any balance unspent will roll over from year to year so you can build up a healthy savings account into retirement. Once you’re over the age of 65 and enrolled in Medicare, you can no longer contribute to your HSA, but you can still use the money for out-of-pocket medical expenses.
To open an HSA, you must have a HDHP, and you can only use HSA funds for qualified medical expenses. If you accidentally use the funds for a non-qualified expense, you will have to report it on your annual income tax and pay tax on it. If you’re under the age of 65 and use the funds for a non-qualified expense, you will also pay a 20% penalty on top of the income tax. Be very careful not to use your HSA funds on non-qualified expenses.
Each year, the IRS releases the annual HSA contribution limit for both individuals and families. The key to maximizing your account is to make the full contribution every year. For tax purposes, you generally have until the tax filing deadline to make a contribution.
CoastHills Credit Union is a full-service financial institution with 12 Central Coast locations throughout Santa Barbara and San Luis Obispo counties.
*Please consult your tax advisor.
Count on us for great loan rates and earnings on your savings.
Your questions answered
You can find your account number by logging in to CoastHills Online or Mobile Banking. Select the account, then the Account Details drop down. From there, you'll see the ACH number, which is your 13-digit account number.
Travel notes cannot be placed over the phone. To place a note on your account, you can send a secure message in CoastHills Online Banking or visit a CoastHills branch.
To send a secure message, log in to CoastHills Online Banking. Select Additional Services, then Secure Messaging. Underneath the search bar, you'll click New Message and complete the ticket.
For mobile, you'll select More from the bottom of your screen, then Secure Messaging. Click on New Message and complete the ticket.
The CoastHills routing number is 322270822
Your checking account number starts with 18, followed by 0's up until your reach your Member Number. For example: 180000012345 is your checking account number. 12345 is your member number.
Your savings are federally insured by the National Credit Union Administration (NCUA), to at least $250,000 and backed by the full faith and credit of the United States Government.
To learn more about federally insured savings coverage, give us a call at (805) 733-7600 or make an appointment at one of our 12 local branches.
Travel life's highways, cruise California waters. We'll help you get out and go.