FAQ

A: A Health Savings Account (HSA) is a tax-advantaged savings account you can use to pay for qualified health expenses for you and your family if you are covered under a high-deductible health plan.

A: According to the IRS, for calendar year 2020, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $3,550 for self-only coverage or $7,100 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,900 for self-only coverage or $13,800 for family coverage.  Check your employee benefit materials to see if your employer offers a qualifying plan.

1. The money you contribute to your account may be pre-tax or tax-deductible. (Speak with your tax advisor or accountant.)
   
2. The money in your account accrues tax-free earnings.
   
3. When you use funds to pay for your deductible or qualified health care expenses, those withdrawals are tax-free as well.

A: Simple: You deposit funds in your account either through a payroll deduction (pre-tax), or by mailing in a check (post-tax). Then you may use that money to pay for health care expenses below your insurance deductible, as well as co-insurance requirements after your deductible is met, and expenses not covered by your health plan. Unused funds can be rolled over and saved for expenses in future years.

A: Those funds simply roll over into the next year . . . and future years. You do not lose your HSA contributions; they just keep accumulating and earning interest. And your money is ready whenever you need it, today or in the future. You can even use your HSA to save for your retirement health care costs. That makes an HSA a tax-advantaged savings tool for your retirement years.

• Keep your HSA;
  
• Transfer your funds to another provider's HSA; or
  
• Transfer your funds as a rollover to another qualifying account with 60 days.

A: Both you and your employer may contribute to the HSA. Other qualified family members may also contribute to the account for you, as long as they meet IRS guidelines. (Check your company health plan materials to see if your employer offers employee contributions, and for your plan's specific funding options.)

• Currently have (or switch to) a "high-deductible health plan” that meets IRS requirements;
  
• Are not covered by other health insurance (for example, you are not a dependent on anyone else's plan, except for vision or dental coverage);
  
• Are not entitled to Medicare benefits nor enrolled in Medicare or Medicaid; and
  
• Are not claimed as a dependent on someone else's tax return.

• Payroll Deduction - If your employer offers this option, you can have a set amount deducted from your paycheck to your credit union each pay period.
  
• Contribution Form - When you open your HSA you will receive a contribution form, which you can use to make a check contribution or indicate a rollover from another qualified plan.

A: You can use the funds as soon as they are contributed and available. If your employer matches some or all of your contributions, they can determine their contribution schedule - annually, monthly, weekly, etc.  Check with your employer.

A: You can withdraw funds using your HSA debit card or by writing a check from your account. Please note:  First Service will not automatically liquidate investments, make transfers or apply overdraft protection to pay for medical expenses if you have an insufficient balance in your HSA.

A: You can receive tax-free reimbursements for qualified health expenses as defined by Section 213(d) of the Tax Code. A list of these expenses is available on the IRS Web site, www.irs.gov. HSA distributions used for any purpose other than the qualified medical expenses listed will be taxable, and appropriate tax rules will apply. You should check with your tax advisor to determine qualified reimbursements specific to your individual needs.

A: If you use your HSA funds for non-qualified expenses, the amount you withdrawal will be taxable, and you'll also be required to pay an additional 10 percent tax penalty on the withdrawal amount. (First Service is not responsible for determining qualified expenses. Please speak with your accountant before making a non-health related withdrawal.)

A: Yes. You will receive a regular monthly statement tracking your account balances and activity. These statements are available online when you register for e-statements or mailed to your home.

A: There are no account set-up fees or monthly maintenance fees for your First Service HSA. Withdrawal fees for ATMs and Debit Cards apply, as well as standard checking fees. There is also a $2.00 per transaction for in-branch withdrawals. Please refer to your Truth In Savings disclosure and fee schedule. If you have questions, please contact a Member Service Representative at (614) 836-0100.

A: At the end of the tax year, we will send you a Form 5498-SA summarizing all of your contributions, and a Form 1099-SA which reports the total distributions taken from your account for the year. We will send these forms to the IRS as well. You should attach these forms to your tax return and submit both when you file. (Please consult with your tax advisor and/or accountant before you file with the IRS.)

A: You can make deposits to a Traditional or Roth IRA for the previous tax year until the April tax-filing deadline, which is usually April 15th.

A: If you're under 59 1/2, the IRS will charge a 10% early withdrawal penalty from a Roth or Traditional IRA. For a Traditional account, you will also need to include the withdrawal amount as income when you file your taxes. If you choose to close your IRA Certificate before its maturity date, the credit union will charge an early withdrawal penalty.

A: It's easy to make deposits by payroll deductions or automatic transfers from you credit union checking or savings account. Any deposits you make through automated means are considered contributions for the tax year in which we receive them. You can also make deposits by mail and at branch locations.

A: The tax laws governing IRAs do not permit borrowing against an IRA, but ask us about other loan options that could help you.

A: All financial institutions are affected by fraud. First Service chooses to let you know as soon as we are advised that your card may have been compromised, even if no activity has occurred.

A: We aren't given a specific time-frame from VISA about compromised events, however, after they do their initial investigation they notify us; and we immediately notify you.

A: First Service does not have access to this information. VISA will not divulge this due to contracts with the merchant.

A: Unfortunately, we have no way of stopping criminals from "hacking" into databases of merchants. While the possibility of a card being used fraudulently is low, we recognize the aggravation our members face in acquiring a replacement card or to have fraudulent activity removed from their account. It is because of these concerns that First Service is dedicated to contacting each affected member-owner proactively, as soon as we are notified. While we realize the time involved in ordering cards or researching for fraud is inconvenient, we feel prompt notification demonstrates that First Service has your best interests in mind.

A: It is possible. First Service has no control over your merchant's database. Even though we cannot control their occurrences, we will continue to contact you each time we are notified by VISA that your card may have been compromised.

• Keep track of the location of your card at all times.
  
• If you misplace your card, call First Service at (614) 836-0100 and select the Lost or Stolen Card (prompt 6) or call VISA direct at 1-866-632-8028.
  
• Never write your PIN on the card or carry the written PIN with you.
  
• Use FirstCU Online at www.firstcu.com or FirstConnect 24-hour telephone access at 614-920-6300 to monitor your account activity and call if anything seems suspicious. If we are not available, the VISA toll-free number for lost or stolen cards is 1-866-632-8028.

A: We realize that this situation is an inconvenience to you. We can order a new card for you and leave your current card open.  However, when you receive the new card, we need you to call to activate the new card; and block the old card. We will also need a valid daytime telephone number to contact you in case we see any problems, and to verify that you received your new card.

A: There are certain steps to follow to receive your charge-back rights:

If you desire additional information, please call 614-836-0100 and ask for Card Services.

TIP: If you receive a new card, remember to verify it with your PIN at an ATM to activate before using it for a merchant purchase.

Protecting your debit or ATM card from fraud requires 24/7/365 days a year monitoring. Our fraud detection programs monitor your card transactions for any suspicious activity. If potentially fraudulent transactions are taking place, we'll contact you immediately so that future fraudulent transactions can be stopped.

• The text message will arrive with a 5 digit code (33748) and contain our financial institution name, dollar amount of the transaction, and merchant name.
  
• You will be asked to reply with "Yes" if you authorized the transaction. You will then receive a confirming text and can continue to use your card with confidence.
  
• A "No" reply means you have not authorized the transaction. You will receive a confirming text message; and you will be contacted immediately by a fraud specialist to protect your account. Please answer this call.
  
• Do NOT reply to the text message with any personal or confidential card information. You should only be asked about a specific transaction and reply to that transaction only. We already have your personal card information.
  
• If you would like to opt out of receiving these messages by text, you may reply with STOP to indicate this preference.