Health Savings Account (HSA)
Your Personal Medical Savings AccountA Health Savings Account (HSA) is designed to help you manage the rising costs of health care by allowing you to set aside money to pay for out-of-pocket medical expenses and save for retirement. You can think of it as a personal savings account specifically for medical expenses, where unused funds will earn interest until they are withdrawn at retirement. With this type of account, you can choose whether you want to defer your money on a tax-deductible basis or have it contributed pre-tax through payroll deduction.
Reasons to Consider an HSA
Funds Roll Over
How It WorksIn order to use an HSA, you must have a High Deductible Health Plan (HDHP). A qualifying HDHP is a medical insurance plan that includes an individual deductible of at least $1,300 or a family deductible of at least $2,600 per year.
Once you have an HDHP in place, you may open an HSA. An HSA is essentially a savings account where you can defer money on a tax-deductible (or pre-tax, if made by payroll deduction) basis to cover future medical costs. It can be invested or just sit there, depending on your comfortability. The money can be withdrawn, tax-free, to pay for qualified medical expenses, such as unreimbursed health care bills. Any unused money is rolled over to the next year.
Eligibility requirements:You’re eligible to participate in a Health Savings Account if you:
- Have health coverage under a qualifying HDHP
- Are not eligible for Medicare
- Are not eligible to be claimed as a dependent on someone’s tax return
- Are not covered by any other non-qualifying health plan (i.e. a health plan offered through your spouse’s employer)
- And/or your spouse is not enrolled in a Health Care Flexible Spending Account (FSA)
Green Insurance Agency
Insurance products may be sold through CommunityAmerica Insurance Agency, LLC, a wholly owned subsidiary of CommunityAmerica CUSO One, LLC and a licensed insurance agency in Missouri and Kansas. Insurance products:
Are Not Federally Insured
Involve Investment Risk
May Lose Value
Are Not Obligations or Guaranteed by the Credit Union