Health Savings Account (HSA)
Plan ahead for health care expenses with a tax-advantaged Health Savings Account (HSA). Paired with a qualified High Deductible Health Plan, an HSA offers a flexible way to save for eligible medical costs and future care needs.
Flexible Tools for Managing Health Care Expenses
Tax-Advantaged Contributions
Make eligible tax-deductible contributions to help save for current and future medical expenses.¹
Tax-Free Withdrawals for Qualified Expenses
Use HSA funds tax-free for eligible medical, dental, and health care expenses.
Visa® Debit Card Access
Pay for qualified purchases conveniently with a free Kohler Credit Union Visa® debit card linked to your HSA.
Year-to-Year Savings Growth
Unused balances roll over from year to year, helping you continue building savings for future health care needs.
Is an HSA Right For You?
To contribute to a Health Savings Account (HSA), you must meet certain eligibility requirements established by the IRS1. In general, you may qualify if you:
- Are covered by a qualified High Deductible Health Plan (HDHP)
- Do not have other disqualifying health coverage
- Are not enrolled in Medicare
- Cannot be claimed as a dependent on someone else’s tax return
Health Savings Account Rates
| Minimum Balance** | Dividend Rate | APY* | Dividend Period |
|---|---|---|---|
| < $500.00 | 0.10% | 0.10% | Monthly |
| $500 | 0.11% | 0.11% | Monthly |
| $2,500.00 | 0.16% | 0.16% | Monthly |
| $5,000.00 | 0.21% | 0.21% | Monthly |
| > $15,000.00 | 0.26% | 0.26% | Monthly |
Support for your Health Savings Goals
Have questions about opening an HSA or planning for future health care expenses? Our team is here to help you explore options that fit your needs and long-term goals.
Resources For Saving
Support for Your Financial Well-Being
Savings Accounts
Build flexible savings for everyday expenses, emergency funds, and future financial goals.
IRA Accounts
Prepare for retirement with long-term savings options designed to support your future health and financial needs.
Money Market Accounts
Earn higher dividends while maintaining convenient access to larger savings balances.
Health Savings Accounts
Frequently Asked Questions
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What is a HSA?
An HSA lets you set aside tax-advantaged money to pay for qualified medical expenses. To contribute to an HSA, you must be enrolled in an eligible high-deductible health plan. HSA funds can be used to help cover current and future healthcare costs.
Who is eligible for a HSA?
To be eligible for an HSA, you generally must be enrolled in a qualified high-deductible health plan, have no disqualifying health coverage, and not be enrolled in Medicare. HSA eligibility rules can vary, so it is important to confirm your specific situation.
How do I open an HSA?
You can open an HSA through Kohler Credit Union if you meet HSA eligibility requirements. To get started, schedule an appointment with a Kohler Credit Union team member who can help you open your account and review next steps.
How much can I contribute to an HSA?
HSA contribution limits are set annually by the IRS and depend on whether you have individual or family coverage. Your allowed HSA contribution may also depend on your eligibility, coverage dates, and whether you qualify for catch-up contributions.
What can I use my HSA funds for?
You can use HSA funds for qualified medical expenses, including doctor visits, prescriptions, dental care, vision care, and other IRS-approved healthcare costs. HSA funds can help pay for eligible healthcare expenses for you and your qualified dependents.
Do HSA funds roll over each year?
Yes. HSA funds roll over from year to year, so you do not lose unused HSA money at the end of the year. Your funds remain available as long as the account is open and can be used for future qualified medical expenses.
Are HSA contributions tax-deductible?
Yes. HSA contributions are generally tax-deductible, and HSA earnings and withdrawals may be tax-free when used for qualified medical expenses. Because tax treatment can depend on your situation, consider speaking with a qualified tax advisor.
Can I use my HSA after retirement?
Yes. You can use HSA funds after retirement for qualified medical expenses. After age 65, non-medical HSA withdrawals are generally taxed as income but are not subject to the additional penalty. Consider speaking with a qualified tax advisor about your situation.
HSA Rules & Important Disclosures
1Health Savings Accounts (HSAs) are governed by federal tax rules established by the Internal Revenue Service (IRS). An HSA must be paired with a qualified High Deductible Health Plan (HDHP) in order for contributions to be permitted. Contributions to an HSA are limited annually by IRS rules, and these limits apply to all contributions to your HSA from all sources (including employer and individual deposits). Withdrawals used to pay or reimburse qualified medical expenses may be tax-free; withdrawals for other purposes may be subject to income tax and a penalty. To be eligible to contribute to an HSA, you generally:
- Must be covered by an HDHP on the first day of the month
- May not be covered by other disqualifying health coverage
- Cannot be enrolled in Medicare
- Cannot be claimed as a dependent on someone else’s tax return.
This information is provided for general educational purposes only and does not constitute tax or legal advice. Members are encouraged to consult with a tax advisor or review IRS Publication for full details on eligibility, contribution limits, qualified expenses, and tax implications. https://www.irs.gov/
APY is accurate as of April 1, 2026 the last dividend declaration date.
Rates may change after the account is opened. Maintenance or activity fees could reduce the earnings on the account. Membership is required.
* APY equals Annual Percentage Yield.
** Minimum balance required to earn the advertised APY.