Health Savings

With health insurance premiums on the rise, you can protect yourself against high or unexpected medical bills, by accumulating funds in a Dillard’s Federal Credit Union’s Health Savings Account.

A Health Savings account (HSA) is a tax-exempt trust or custodial account established exclusively for the purpose of paying or reimbursing qualified medical expenses for you, your spouse and your dependents.

Eligibility

Who is eligible to open an HSA? An HSA can be established by any individual who:

• Is currently covered under a qualified High Deductible Health Plan
• Has no other first-dollar medical coverage
• Is not enrolled in Medicare
• Cannot be claimed as a dependent on someone else’s tax return
• Could not have received Veteran’s Affairs medical benefits within the past 3 months
• Does not have a Flexible Spending Account (FSA) or a Health Reimbursement Account (HRA)

Contributions

The maximum 2012 contribution limits are:

• $3,100.00 single coverage
• $6,250.00 family coverage

A qualified high deductible health plan must meet specific requirements. The 2011 requirements for the plan to be considered are:

• Minimum deductible: $1,200.00 individual coverage
• $2,400.00 family coverage

Dividends

Dividends are calculated on your average daily balance, paid and compounded monthly

Rates

APR+ APY* Less than $3,000 1.00% 1.00% $3,000 - $9,999.00 1.25% 1.25% $10,000 plus 1.65% 1.65%

+Annual Percentage Rate calculated on the Average Daily Balance method
*Annual Percentage Yield

ACCESSING YOUR HSA FUNDS:

Your DFCU HSA offers several convenient methods for accessing your funds at any time. You will receive A Health Savings Account debit card that can be used to make your qualified medical purchases or payments. Where debit cards are not an option, you can pay for services and products with an HSA check.