Health Savings Account Services

Sole proprietors and others who are self-employed can have an HSA, and are, in fact, often ideal candidates for an HSA. In such situations, the business owner is both employer and employee. HSAs are often advantageous for the self–employed because:

• high–deductible health insurance plans generally have modest premium costs, and may be an effective cost–containment mechanism
• the self–employed individual is protected against potentially catastrophic healthcare expenses, and
• the HSA may serve the dual purpose of providing for both medical and retirement expenses

You can, but you’ll need to pay a 20 percent tax penalty for the total amount you withdraw.

For standard delivery, send forms for new or existing HSA accounts to:

Patelco Credit Union
HSA Department #25
PO Box 8020
Pleasanton, CA 94588

For overnight delivery, send forms for new or existing HSA accounts to:

Patelco Credit Union
HSA Department #25
3 Park Place
Dublin, CA 94568

Yes. Everyone who has an HSA or contributes to one is required to report: the account holder, employers, and the HSA's custodian or trustee.

• Contributions are deductible from federal taxes up to the maximum allowable amount.
• Dividends earned are free from federal tax.
• Qualified medical expense withdrawals are free from federal tax.
• Unused HSA funds may be used for retirement. If you’re 65 or over, your funds are tax-free. If not you’ll pay a 10% penalty.
• Funds used during retirement for non-medical expenses are subject to income taxes.
• Upon death, HSA assets become the property of a named death beneficiary or estate. A spouse can treat the assets as his or her own HSA. Non-spouse death beneficiaries will need to report the assets as ordinary taxable income.
• Some states allow tax-deductibility.