Health Savings Accounts
What is an HSA?
It's a tax-deductible savings account that you deposit money into in order to pay for health expenses such as:
Here's a more in-depth look into what an HSA is >>>
- Tax Savings. Annual contributions are tax-deductible* from federal and even several qualifying states taxes.
- Ownership. Funds rollover in the account from year to year, just like an IRA.
- Earned Interest. Dividends earned are tax-free.
- Portability. You, not your employer, own the account so you can always keep your HSA.
- Flexibility. You can use the funds in your HSA to pay for current and future medical expenses, including those not covered by your insurance.
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, may not be enrolled in Medicare, may not be a recent recipient of VA medical benefits and cannot be claimed as a dependent on another person's tax return.
Availability of Funds
Withdrawals are tax-free if the funds are used exclusively for paying or reimbursing qualified medical expenses, such as doctor visits, prescription drugs and over-the-counter medicines for the owner, his or her spouse and dependents. Qualified expenses are those incurred after the account is opened.
*Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government National Credit Union Administration, a U.S. Government Agency.