Health Savings Account (HSA)
What is a Health Savings Account (HSA)?

An HSA is a tax-exempt savings account that you can use to pay for qualified medical expenses, such as your deductible, co-payments for medical care and prescription drugs, or vision and dental care bills. To qualify for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP).

Is there a cost to participate in a Health Savings Account?

No, there are no sign up or monthly administrative fees. The amount of pre-tax money you choose to contribute from your paycheck goes directly into your HSA. Gulf Coast Educators Federal Credit Union, the administrator of your HSA, does not charge any fees, and will even deposit the first $5 into the account for you.


If you decide to invest any of your HSA funds, myHSAinvestments may charge a fee on funds that are invested.

How does an HSA work?

Every pay period, you will have a small portion of your check deposited into your HSA pre-tax. You will receive an HSA debit card that you may use to purchase and pay for qualified medical expenses. Unlike the Healthcare Flexible Spending Account (HCFSA), the full amount is not deposited into your HSA debit card at the beginning of the plan year. The available amount is based on what’s deducted from your paycheck.

Where can I use my HSA debit card?

You can use your HSA debit card anywhere that accepts VISA. You are responsible for ensuring that your purchase is a qualified medical expense.

What happens if I make a purchase with my HSA debit card that is not a qualified medical expense?

HSA distributions not used for qualified medical expenses are subject to ordinary income tax and, if taken before age 65, a 20% IRS penalty tax (unless the distribution is because of death or disability).

What are qualified medical expenses?

Health plan deductibles, co-payments for medical care and prescription drugs, or vision and dental care bills. You can view the full list of qualified medical expenses by visiting the IRS website and viewing Publication 502.

Who administers my HSA?

Gulf Coast Educators Federal Credit Union administers Health Savings Accounts for Katy ISD employees. If you have any questions, you may call 281-436-5499.

What happens to the funds I haven’t used in my HSA at the end of the year?

The money that is contributed to your HSA continually rolls over every year and any dividends earned are also tax-free.

How can I check my HSA balance?

You can check your balance by logging into your online banking portal at, through the Gulf Coast Educators FCU mobile app, or by calling 281-436-5499.

You can download the Gulf Coast Educators FCU mobile app for free from the App Store or Google Play from your mobile device. You can also text “Apple” or “Android” to 281-843-8611 to have the download link sent straight to your phone.

Am I eligible for an HSA?

You are eligible for an HSA if you meet all of the following criteria:

  1. You are covered under a High Deductible Health Plan (HDHP)
  2. You are not covered under a secondary health plan that is not an HDHP
  3. You are not enrolled in Medicare and have not received VA medical benefits within the last three months
  4. You are not eligible to be claimed as a dependent on another person’s tax return
How much can I contribute to my HSA?

You can make as many pre-tax contributions to your HSA as you’d like, as long as you don’t exceed the annual limit set by the IRS. The current year’s limits are displayed in the table below.


Limits & Contributions

These limits are subject to annual cost of living and pro-rated adjustments.

Maximum HSA Contribution Limits 2022 2021
Individual Coverage $3,650 $3,600
Family Coverage $7,300 $7,200
For individuals 55+ years old, add $1,000    
If I set up an HSA through my employer, what happens if I switch jobs?

You can keep the money in an HSA even after you leave that job, similar to a 401(k). However, you will get stuck with a 20% penalty, plus an income-tax bill, if you use any of the money for non-medical expenses before age 65.

Can I keep contributing to the account after age 65?

You can keep your HSA at any age, however, you can no longer make new contributions to the account after you have signed up for Medicare. Some people over age 65 who are still working put off signing up for Medicare if their employer offers a high-deductible health insurance policy with an HSA, especially if their employer contributes to the account.

Does my HSA earn dividends?

Yes! Please click here to view our current HSA rates. You also have the option to invest your HSA funds using myHSAinvestments to grow your Health Savings Account even faster. For more information on investing a portion of your HSA, visit .

myHSAinvestments Disclosures:

myHSAinvestments is powered by Devenir

Neither Gulf Coast Educators Federal Credit Union, nor Devenir Group, LLC, the third party, can provide investment advice to you on this program. Once you transfer funds from your HSA to myHSAinvestments, these dollars are no longer covered by applicable FDIC or NCUA insurance. We recommend you speak with a licensed investment advisor or consult the prospectus should you have questions about any investment. Carefully weigh the advantages and disadvantages of investing your HSA funds before doing so. Investment products are not federally-insured; may lose value and are not a deposit account. Investment accounts are not obligations of the credit union and are not guaranteed.
Funds should not be considered a deposit of or guaranteed by Gulf Coast Educators FCU, may lose value, and are not NCUA/NCUSIF Insured.