Hercules HSA Information
Answers to your most frequently asked questions

Welcome Hercules Employees!

We are extremely excited to add heritage Hercules employees to the Ashland CU family! While many of you are here to learn about the Health Savings Accounts, we hope you will stick around and choose to take advantage of everything Ashland CU has to offer, including some of the best loan and deposit rates anywhere!

Employees enrolled in the new HSA 1250 High Deductible Health Plan (HDHP) became eligible to open an HSA on July 1, 2009.

Open Your HSA
  1. If you are not already a member of Ashland CU, you must sign up for membership. ACU requires only a $5 initial deposit, and we make that deposit for you, so it's absolutely FREE!
  2. Review and familiarize yourself with pages 2-5 of the HSA Custodial Account Agreement and Disclosure Statement
  3. Complete the HSA Application
  4. Complete the HSA Eligibility and Information Form and
  5. Complete Sections II and III of the Ashland CU Disclosure Statement
  6. Send your completed forms and any funds you want deposited into your HSA back to: Ashland Credit Union, PO Box 391, Ashland, KY 41105
Frequently Asked Questions

In order to assist you with your planning, we have gathered a few of your most frequently asked questions. If you have a question not listed here, please feel free to contact us.

Q: What is the tax benefit of an HSA?
A: Any money you contribute to an HSA is tax deductible, meaning it reduces your taxable income. The Ashland CU HSA solution is a post-tax benefit, meaning that your contributions must be reported when you file your taxes each year. Ashland CU makes this easy by providing a form 1099-SA each January with the information you need in order to correctly file your annual income tax return.

Q: Am I Eligible?
A: You are eligible to open a Health Savings Account if:
  • You are enrolled in a High Deductible Health Plan (HDHP) such as the HSA 1250 medical option.
  • You are not enrolled in any other medical plan which is not a HDHP.
  • You are not enrolled in Medicare.
  • You are NOT eligible to be claimed as a dependent on another person's tax return.
Q: Are there any maintenance fees associated with an Ashland CU HSA?
A: The $15 account setup fee is waived for Ashland Inc employees, including heritage Hercules. We require a $50 deposit to open the account, but there are no maintenance or transaction fees.

Q: How much can I contribute to my HSA?
A: For 2009, you may contribute $3,000 to your HSA for single HDHP coverage or $5,950 for family HDHP coverage. If you are age 55 or older, you may make an additional "catch-up" contribution of $1,000.

Q: My HDHP coverage started on July 1 - does this affect my maximum contribution?
A: No - Since 2007, the IRS has allowed account holders to contribute the maximum amount no matter what time of year HDHP coverage begins. However - earnings on your HSA may become taxable if you cease to be eligible to make contributions to an HSA in subsequent years. Consult your tax advisor for more information.

Q: How do I contribute funds to my HSA?
A: Heritage Hercules employees have several options for making contributions to their HSA, including:
  • Direct Deposit - Through the Hercules HR portal, you may designate a portion of your paycheck to be deposited directly into your HSA.
  • Transfer from another ACU account - If you take advantage of an ACU savings, money market, or checking account, you can easily transfer funds to your HSA over the phone, Internet, or even your mobile device.
  • Electronic transfer from an account you hold at another institution.
  • Check deposit
Q: How do I pay for my medical expenses with the funds in my Ashland CU HSA?
A: Each year, account holders are sent eight free checks to use for qualified medical expenses. More checks can be ordered if necessary. Funds are also available through check withdrawal and debit card (via transfer to an ACU checking account).

Q: Is there a limit on how much I can spend from my HSA in a given year?
A: There are no limits on how much you can spend on qualified medical purchases in a given year other than the available balance.

Q: How do I keep track of my medical expenses for the IRS?
A: ACU recommends that you retain receipts and invoices for all medical expenses paid for using funds from your HSA. In the event of an IRS audit, you may be asked to provide evidence that your expenses were used for HSA-eligible purchases.

Q: This sounds similar to a Flexible Spending Account. What is the big difference?
A: Funds in your HSA carry over from year to year, unlike funds in a Flexible Spending Account, which are lost if you do not use them in the appropriate calendar year. Your balance can grow by the maximum allowed amount each year, making the HSA a great option for building a medical fund for expenses you incur during the later years of your life.

Q: I have other questions. Can you help?
A: If you have questions specifically related to Ashland CU's HSA, please call our office at 800-245-8112 to speak to a member representative. If you have questions about the tax implications of a HSA, we encourage you to consult your tax advisor or conduct your own research at the US Treasury website.
Links:
» Join ACU
» US Treasury
   Website
» Why Join ACU?
» Contact Us