Other Tax-Advantaged Accounts

Credit unions may offer members tax-advantaged savings accounts, including HSAs and education savings accounts (for example, 529 Savings Plans and Coverdell Education Savings Accounts). A credit union offering these types of accounts must comply with any IRS regulations associated with these specific accounts, and may benefit from employing personnel with specific expertise in these areas.

Credit unions should weigh the cost of offering these accounts against the potential benefits to members and the credit union. Not all credit unions have a business model that supports the costs of offering these products. Rules governing these accounts are complicated, and may warrant the expertise and expense of a third-party processor.

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