Health Savings Account
Health Savings Accounts are designed to help those with qualifying high-deductible health insurance plans save for future health care expenses. The primary advantage of an HSA is the federal tax benefits they provide.
- No set-up or annual maintenance fee.
- Contributions are tax deductible.
- Funds earn dividends and grow on a tax-deferred basis.
- Funds used to pay for qualified health care expenses are tax-free.
- Account funds can be withdrawn anytime you need. For convenience, you can transfer funds to a checking account and pay by check or debit card.
- HSA is portable, allowing you to keep the account balance if you change employers.
- Distributions after age 65 that are not for qualified medical expenses are penalty-free.
- Funds not spent by the end of the year automatically roll over into the following year and continue to grow tax-deferred.
For more information on Health Savings Accounts, please contact any Tech Credit Union branch.
Contributions, withdrawals and the payment of health care expenses are the sole responsibility of the account holder. Account holder is responsible for determining eligibility to open HSA and for using the account according the IRS requirements. Contact your state tax resource to determine if your state also provides tax benefits for HSAs.