NYS Clarifies HSA Regulation
I have some good news to report. Yesterday, the DFS clarified what we had long suspected but could not state with unequivocal confidence: state-chartered credit unions have the authority to offer Health Savings Accounts as part of their incidental powers.
For more than a decade, federally chartered credit unions have been authorized to offer HSAs to their members as part of their incidental powers. It was logical to assume that since the state’s credit union trust powers are already more expansive than those provided to federal credit unions that state charters could also offer these accounts. Yesterday, Community First Credit Union received confirmation that it could offer this service. Thank God I can finally put this file to rest. It was getting kind of thick.
Incidentally, in a 2002 letter, the State opined that pursuant to section 454(34) of the New York State Banking Law, state credit unions have the same incidental powers as their federal counterparts as of 2002. They are also authorized to request any incidental power granted to their federal counterparts. HSAs are now a recognized incidental power of state charters.
On that happy note, enjoy your weekend and I would feel sorry for all you Bills fans, but my brother is a lifelong Jets fan and I think an 0-2 start would have put him in a bad mood for the next several months.