Health Savings Accounts (HSA)

Take control over your healthcare expenses with Arizona Central’s Health Savings Account (HSA)!

Health Savings Account

Arizona Central’s Health Savings Account (HSA) gives you more control over your health care expenses and, more importantly, provides a tax-advantaged tool for paying qualified medical expenses.

  • No monthly service fees
  • Low $20 annual plan fee
  • No per check charges
  • Earn dividends on your balance
  • Easy account access with an HSA Visa® Check Card
  • FREE welcome pack of checks
  • Online access to transaction history and balance information
  • FREE Apple Pay
  • Stay on track and up to date with your health retirement savings with Retirement Central!

To open an account, call us at (602) 264-6421 toll free (866) 264-6421 or visit any of our 9 local branches.

Health Savings Money Market Account

Arizona Central is now offering a Health Savings Money Market account! This account allows you to not only gain more control over your health care expenses and provide a tax-advantage tool for paying qualified medical expenses, but it gives you the opportunity to earn higher dividends on health savings funds that are on deposit.

  • 1,000 minimum deposit required to open account
  • When an average daily balance of $1,000 is maintained, there is no monthly service fee.
    • A service fee of $15 will be applied to all accounts that do not maintain this average daily balance
  • 3 withdrawals per month at no charge

To open an account, call us at (602) 264-6421 toll free (866) 264-6421 or visit any of our 9 local branches

View Health Savings Account Rates

What is a Health Savings Account (HSA)?

An HSA is a type of savings account that allows you to set aside money for medical expenses. A health savings account uses untaxed dollars to pay for qualifying medical costs, including:

  • Deductibles
  • Copayments
  • Coinsurance
  • Some other expenses

One benefit of an HSA is it is entirely tax free, even if it’s invested. Any interest, dividends, or capital gains you earn are nontaxable. Withdrawals for qualified medical expenses are also tax-free.

If you do not use your HSA for medical expenses, it can also act as another sort of retirement account, allowing you to withdraw funds once you are over 65.

Frequently Asked Questions About Savings And Health Accounts

Any adult can contribute to an HSA if they:

  • Have coverage under an HSA-qualified high deductible health plan” (HDHP).
  • Do not have other health insurance coverage, such as a spouse’s plan, that is not an HDHP.
  • Are not enrolled in Medicare.
  • Are not claimed as a dependent on someone else’s tax return

Any company that sells health insurance coverage in your state can offer HDHP policies. Although Central Arizona cannot recommend specific names of companies that sell these policies, you should be able to find a qualified policy by contacting your state health insurance company or your state department of insurance.

If your current employer offers health insurance coverage, contact their human resources department to see if they offer these types of plans.

Your Arizona Central Health Savings Checking Account can be used to pay for covered expenses that apply toward your HDHP annual deductible. In addition, you can pay for qualified medical expenses that your health plan might not cover, such as vision care (eyeglasses and contact lenses), dental and orthodontic services, and even long-term care insurance.

Examples include:

  • Diabetic supplies
  • Eye exams, eyeglasses, contact lenses, and solutions
  • Hearing aids
  • Laser eye surgery
  • Orthodontia, dental cleanings, and fillings
  • Prescripton drugs
  • Physical therapy, speech therapy, and chiropractic expenses
  • Specialized equipment and devices for disabled persons
  • Transportation expenses related to medical care
  • Weight reduction programs for physician-diagnosed obesity

Remember, you must comply with HSA spending regulations. You can find detailed information about qualified medical expenses in Section 213(d) of the Internal Revenue Code and IRS Publication 969.

It is your responsibility to ensure that the funds from the account are being used for qualified medical expenses. Arizona Central does not monitor whether you use your HSA for qualified medical expenses. For record keeping purposes or in the event of an audit, you should maintain receipts of all of your expenses.

You can make contributions to your Health Savings Checking Account by:

  • Authorizing funds be deposited electronically from another account either one time or every month
  • Making lump sum contributions by check in any amount up to the maximum limit
  • Rolling over funds from another HSA or Archer Medical Savings Account (MSA)
  • Requesting that your employer contribute to the account with pre-tax deductions
  • Initiate a one-time transfer from your IRA

Find out if your employer offers a roll-over from your FSA or HRA

Health savings accounts do have some rules associated with them.

  • To be eligible, you must have a high-deductible health plan, meaning your deductible is at least $1,400 for self-only coverage and $2,800 for family coverage.
  • You cannot have another qualifying health savings account, such as an FSA or an HRA.
  • There are annual contribution limits of $3,550 for self-only coverage and $7,100 for family coverage, including employer contributions. (If you are over 55, you can contribute an extra $1,000 per year)
  • You can only contribute to an HSA tax-free until you are eligible for Medicare (65 years of age)
  • HSAs cannot be used on most non-prescription medical costs, such as toothpaste, toiletries or nicotine gum. Withdrawals for non-qualified purchases are subject to taxes, as well as a 20% penalty.

If you’re looking for different health savings options, you may be wondering, what’s the difference between an HSA and an FSA.

An FSA is a qualified pre-tax health savings option that comes with some rules:

  • Eligible with low-deductible health plans
  • Limited to $2,750 per year per employer
  • Use it or lose it—FSAs can only be used within a one-year period or you forfeit the amount in your account
  • Must be set up by an employer
  • Owned by employer and funds are lost if you lose or change your job
  • Can only change contribution during open enrollment period or during qualifying life changes

HSA differences include:

  • Savings roll over year-over-year
  • Offered at banks, credit unions and other financial institutions
  • Self-employed persons are eligible
  • Owned by the individual and stays with them no matter where they work
  • Can change your contribution at any time

Retirement Central

Take the first step towards your health and financial security for your future! Retirement Central is your one stop to track and keep up to date with everything there is to know about your health savings for retirement.

Some of the featured enhancements you have access to with Retirement Central:

  • Open a new HSA or IRA account with digital signature or paper copies
  • Request transactions
  • Information based on different life stages
  • Planning calculators (beneficiaries, early payouts, ROTH conversions, etc.)
  • Current contribution limits
  • FAQs for various retirement accounts
Deep Roots, Strong Community:

Savings Options

Personal
 Savings Accounts

Your needs, your savings. Explore our personalized range of solutions designed to match your financial goals.

CU
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Our exclusive savings and education program is specially curated for teen members aged 13 to 17.

Individual
 Retirement Accounts

Discover the benefits of IRAs – enjoy potential tax-deferred, tax-deductible or tax-exempt earnings, ultimately saving you money.

Certificates
 of Deposit

Experience the best of both worlds – great rates and low-risk with our CDs. Enjoy the predictability of dividend earnings from the very beginning.

CU Grow Youth
 Savings Account

We’re here to help the younger generation learn about financial literacy.

Health 
Savings Accounts

Our HSA provides a tax-advantaged tool for paying qualified medical expenses, allowing you to take control of your healthcare expenses.