HSA = Health Savings Account
(It does not, in fact, mean Humongous Squirrel Association but that’s an easy mistake.)
Members Community Credit Union now offers these accounts to coincide with various health insurance plans requiring the use of an HSA to pay for current and future health expenses. In other words, it’s a savings account used in conjunction with various health insurance plans allowing users to save money tax-free against medical expenses, pretty nifty huh?!
What are the 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 was qualified under an HSA plan at the time that 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 your Health Savings Account here at MCCU:
- Free account with no minimum balances or initial deposit.
- Free debit card for convenient access to your HSA funds.
- Dividend rate of 0.50% 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. If you don’t have any accounts with us and would like to, click here.
APY = Annual Percentage Yield