A Health Savings Account, or HSA, is a tax-advantaged medical savings account. It provides members with a tax-free way to pay for qualified medical expenses.
Benefits of an HSA:
HSA contributions are tax deductible. The account earnings accumulate on a tax-deferred basis. Earnings can be tax-free if used for qualified medical expenses.
Who is eligible for a Health Savings Account?
To make contributions to an HSA the account owner must meet all of the following requirements:
- Must be covered under a High Deductible Health Plan
- Is not covered by any other health plan that is not a HDHP
- Is not enrolled in Medicare
- Cannot be claimed as a dependent on another person’s tax return
Is less than 65 years old. Individuals may not make regular contributions to an HSA in or after the tax year they reach age 65.
Availability of Funds:
Withdrawals are tax-free if the funds are used exclusively for paying or reimbursing qualified medical expenses. Qualified expenses are those incurred after the account is opened. These include doctor visits, prescription drugs, and over-the-counter medicines for the owner, his or her spouse and dependents.
Contributions:
Contributions for the current year can be made until April 15th of the following year. The maximum contribution limits are listed below:
Year Single Coverage Family Coverage Catch-up Provision for 55 or over
2008 $2,900 $5,800 $900
Types of accounts available:
Shoreline Credit Union offers a checking account for your Health Savings Account deposits. Checks and debit card are available. Interest is paid monthly. (Tiered rates based on daily balances over $100.00)
If you think a Health Savings Account is right for you, or if you have questions...
Please contact Member Services at (920) 793-4541 to make an appointment.
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