Imagine a tax-free account that allows you to pay for qualified medical expenses, including dental and eye care, while you earn interest on your balance. Wouldn’t that be great? If you’re covered under a High Deductible Health Plan (HDHP), enrolled in Medicare, or claimed as a dependent on another person's tax return, you may qualify for a Health Savings Account (HSA).
Here are just a few of the many HSA benefits:
- You can reduce your taxable income with triple tax benefits:
- Automated payroll/folio contributions are made with pre-tax dollars.
- Interest earned is non-taxable.
- Qualified medical expenses are tax-free.
- Use it as an additional vehicle for pre-tax retirement savings
- Take the account with you no matter where you go, even once you retire
- Balances roll over from year to year, so you don’t have to spend all the money you have put away during the year
In addition, our HSA:
- Doesn't charge account, maintenance, or service fees.
- Offers a safe, secure return at a competitive rate: 0.60% APY*, unlike other financial institutions.
- Allows for easy access to funds. Use your free HSA Visa® debit card or order checks.
Contribution Limits and Deductibles for Health Savings Accounts (HSA)2
|For 2016||For 2015|
|Catch-Up Contributions (ages 55+)*
(additional $1,000 for each qualified member)
|HDHP minimum deductibles required||
Open a Health Savings Account
Manage your exisiting Health Savings Account
Consult your tax advisor or refer to IRS Publication 502. Contribution limitations and other restrictions apply to HSAs. To have a Federally Qualified HSA, you must purchase and maintain a HDHP with minimum deductibles of $1,300 (individual) and $2,600 (family), and maximum out of pocket expenses less than $6,850 (individual) and $13,700 (family). Generally you cannot be covered by another low-deductible health insurance policy. The tax treatment of HSA contributions and distributions under your state's income tax laws may differ from the referenced federal tax treatment, and from state to state. Consult with your financial or tax advisor for more information. This Credit Union is federally-insured by the National Credit Union Administration.
1Refer to section 213 (d) of the IRS Tax Code.
2Visit the U.S. Department of Treasury website for up-to-date contribution limits and more detailed information on plans and taxes.
*APY = Annual Percentage Yield. Yields are subject to change at any time. Fees could reduce the earnings on an account.