HEALTH SAVINGS ACCOUNTS
Manage health care costs with this tax-advantaged account.
Plan ahead to manage health expenses
As a complement to your High-Deductible Health Plan (HDHP), a Health Savings Account (HSA1) helps you effectively manage your healthcare budget.
What is an HSA?
An HSA is a type of savings account that lets you set aside pre-tax dollars to pay for qualifying medical expenses.
Qualified Expenses Include:
- Medical appointment co-pays
- Health care and deductibles
- Prescriptions
See full list of covered medical expenses at IRS.gov
HSA Benefits:
- Tax Savings:
- Contribute to the account either on a pre-tax or tax-deductible basis.
- Earn interest and grow your savings tax-free.
- Withdraw funds tax-free to cover qualified medical expenses.
- Contribute to the account either on a pre-tax or tax-deductible basis.
- Availability: Funds roll over in the account from year to year, with no risk of losing funds you didn’t spend.
- Convenience: Use your HSA Visa debit card to pay directly for qualified medical expenses, with no extra paperwork to file.
- Portability. You own the account, not your employer. You can keep your HSA even if you change jobs. See Eligibility for more information.
- Flexibility. Use the funds in your HSA to pay for current or future eligible medical expenses, including those not covered by your insurance.
Open or Manage Your Account
To open a new HSA or manage your existing account online, visit Retirement Central. Retirement Central is our dedicated hub for all tax-advantaged accounts, including IRAs and HSAs.
You must be a current member and the primary account holder to open a new HSA online.
You can also call us at 800-325-9905, or email irastaff@togethercu.org for assistance.
Eligibility
To contribute to a Health Savings Account you:
- Must be covered under a High-Deductible Health Plan (HDHP).
- May not be covered by any other health plan that is not a HDHP, including a spouse plan.
- May not be enrolled in Medicare.
- May not be a recent recipient of VA medical benefits.
- Cannot be claimed as a dependent on another person's tax return.
Availability of Funds
You can spend or withdraw funds tax-free if the funds are used exclusively to pay for or reimburse qualified medical expenses for the account owner, their covered spouse, or covered dependents.
Expenses must be incurred after the account is open to qualify.
Financial Wellness Resources
Pro-tip: Always live below your means. It's easier than you might think!
A growing family come with growing goals... and growing expenses. A realistic budget is a key to keeping your financial health in check.
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