HSA = Health Savings Account
Being sick is no fun. If your insurance policy is a High Deductible Health Plan (HDHP), it can put a dent in your wallet too. A Health Savings Account (HSA) is an easy way to save tax-free against medical expenses and health care costs like doctor visits, prescriptions, dental care, and more.
Benefits of an HSA
- HSA deposits automatically roll over and accumulate year to year if not spent because they are not really tied to expenses in a particular plan or calendar year. Unlike with Flexible Spending Accounts.
- The funds contributed to an account are not subject to federal income tax at the time of deposit.
- They also may be used to reimburse qualified expenses from prior years as long as the expense qualified under an HSA plan at the time the expense was incurred.
- Withdrawals for non-medical expenses are treated very similarly to those in an individual retirement account (IRA) in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier.
What you get with an HSA at MCCU:
- Free account with no minimum balances or initial deposit.
- Free debit card for convenient access to your HSA funds.
- A dividend rate of 0.20% APY with no minimum requirements.
- Access your balance information 24/7 with eBranch.
For even more information or to open an HSA, stop by either branch or give us a call.