About HSAs

Health Savings Accounts (HSAs) were authorized by the Medicare Prescription Drug, Improvement and Modernization Act of 2003. An HSA is a tax-exempt trustee or custodian account established exclusively for the purpose of paying for “qualified medical expenses” of the account owner. HSA accounts became legal on January 1, 2004.

The financial institutions that maintain HSAs are referred to as the trustee or custodian of the account. The trustee or custodian and the HSA account holder have various legal and contractual rules they must follow.

The Internal Revenue Service (IRS) requires tracking and reporting of many types of financial information. HSA reports assist the federal government, members, and credit unions in tracking details such as HSA distributions, contributions, and balances.

Credit unions must also keep track of the movement of HSA funds, whether through an internal transfer, through a trustee-to-trustee transfer, or through a rollover in or out of an HSA.

IRAdirect express Interface for HSAs

IRAdirect express integrates Portico with IRAdirect®. In one seamless workflow, you can complete a paper form for the member and apply the transaction to Portico and IRAdirect, without duplicate data entry.

• Save time and money - Apply HSA transactions to Portico and IRAdirect using a single workflow.
• Eliminate costly errors - Built-in edits help eliminate common user errors.
• Improve member service - Simple workflows and language help your staff confidently and accurately complete transactions.
• Reduce work - With less errors, back-office auditing is easier and faster.
• Simplify form completion - Forms are automatically completed during the transaction.