Available in Idaho only, a Medical Savings Account is a tax-deferred way in which money can be set aside to pay for routine out-of-pocket health care expenses and to build up savings for future medical costs. Check rates.
- Contributions to an MSA are not deductible on Federal income tax returns
- MSAs are individual or joint accounts with a designated beneficiary
- If you are married and file a joint Idaho state income tax return, you may open a joint account
- Any member with taxable income may open a Medical Savings Account
- There are no minimum deposit requirements, setup charges or service fees
- Dividends are paid based on the balance in the account
- OPEN A NEW ACCOUNT
Will I lose the money if I don’t use it during the year?
No, the MSA account is designed for long term health cost planning and may continue to accumulate year after year.
Why should I open an Idaho MSA account?
Depositing into an MSA allows for state tax deductions of up to $2,000 individually or $4,000 jointly each year
When can I contribute to my MSA?
Contributions can be made at any time during the year for medical expenses already incurred.
Rate Information- The dividend rates for this account are determined at the discretion of the board of directors. See current rate sheet for dividend information.
The dividend rates and annual percentage yields may change at any time.
Nature of dividends – Dividends are paid from current income and available earnings, after required transfers to reserves at the end of a dividend period.
Crediting Frequency – Dividends will be credited into this account monthly.
Compounding Frequency- Dividends will be compounded monthly.
Dividend period- For this account type, the dividend period is monthly, for example, the beginning date of the first dividend period of the calendar year is January 1, and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date precedes the ending date of a dividend period, and for the example above is December 31.
Effect of Closing an Account – If you close your account before dividends are paid, you will not receive the accrued dividends.
Average daily balance computation method- Dividends are calculated by the average daily balance method which applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the balance in the account for each day of the period and dividing that figure by the number of days in the period. The period we use to make this calculation is monthly.
Accrual of dividends on non-cash deposits – Dividends will begin to accrue on the business day you place non-cash items (for example) into your checking account.
Minimum balance to open – The minimum balance required to open this account is $5.00.
Minimum balance to obtain the disclosed annual percentage yield- You must maintain a minimum average daily balance of $50.00 in your account to obtain the disclosed annual percentage yield.
Additional limitations – The account holder may deduct up to $2,000 ($4,000 for a married couple with a joint account) in each calendar year for Idaho income tax purposes.
Withdrawal limitations – Withdrawals made before age 59 ½ for non-qualified medical expenses will be subject to a 10% tax penalty plus income tax. Additionally, due to the nature of this account, we are unable to offer any type of overdraft protection. If drafts attempt to pay against insufficient funds, they will be returned.
Withdrawal notice – We reserve the right to at any time require not less than seven days’ notice in writing before each withdrawal.
Bylaw Requirements – You must complete payment of one share into your Share account as a condition of admission to membership. The par value of a share is $5.00.
Balance Requirements – If within six months of admission to membership or increase in the par value your balance falls below the par value of one share and you do not increase the balance to at least the par value of the one share within six months of the reduction, you may be terminated from membership.
National Credit Union Administration Insurance – This credit union is federally insured by the National Credit Union Administration.