Planning for the future isn't just about saving for retirement or buying a home — it's also about preparing for health-related expenses. Whether you're managing ongoing medical costs or simply want peace of mind for the unexpected, a Health Savings Account (HSA) can be a powerful financial tool. At a community-focused credit union in Lowell, Indiana, Tech Credit Union is here to help our members open and manage HSAs with personalized service and local support, ensuring their health and financial goals are aligned.
For individuals and families in Lowell, understanding how an HSA works — and how to open one through a credit union — can help you take control of healthcare costs now and in the years to come.
What Is a Health Savings Account?
A Health Savings Account (HSA) is a special type of savings account designed to help people in Lowell, Indiana with high-deductible health plans (HDHPs) set aside money for qualified medical
expenses. Contributions to an HSA are tax-deductible, earnings grow tax-free, and funds can be withdrawn tax-free when used for approved healthcare costs.
Eligible expenses include:
● Doctor visits
● Prescription medications
● Vision and dental care
● Mental health services
● Medical equipment
● Certain over-the-counter items
How HSAs Support Financial Wellness
Health expenses in Lowell, Indiana are one of the most unpredictable parts of a household budget. Even with good insurance, co-pays, deductibles, and out-of-pocket costs can add up quickly. An HSA helps you manage these expenses proactively.
Benefits include:
● Tax advantages: Contributions are pre-tax or tax-deductible, and withdrawals for qualified expenses are not taxed
● Rollover flexibility: Unlike a Flexible Spending Account (FSA), unused HSA funds roll over year to year
● Portability: Your HSA stays with you, even if you change jobs or retire
● Investment potential: Many HSAs allow you to invest funds once a minimum balance is met
For long-term planning, an HSA can even serve as a supplemental retirement tool. After age 65, funds can be withdrawn for any purpose without penalty (though non-medical withdrawals are taxable).
Common Questions About Health Savings Accounts
If you’re new to HSAs, you may have questions. Here are a few answers that can help clarify how they work:
How much can I contribute each year? Contribution limits are set by the IRS and may change annually. In 2024, individuals can contribute up to $4,150, and families can contribute up to $8,300. People aged 55 or older can contribute an additional $1,000 as a catch-up contribution.
Can I use my HSA to pay for my spouse or children’s expenses? Yes. If the expenses are for a qualified medical need and the person is listed on your insurance policy, you can use your HSA to cover their costs.
What happens if I don’t use all the money in my HSA? It stays in your account and continues to grow. You can use it in future years, even after you retire.
Can I invest my HSA funds? Some HSAs offer investment options once you’ve reached a certain minimum balance (often $1,000 or more). Your local credit union can help you determine if investment options are available with your account.
Pairing HSAs With Broader Financial Planning
An HSA works best when it’s part of a larger financial strategy. It can complement other savings tools, like IRAs, emergency funds, or retirement accounts.
Some tips for using an HSA strategically:
● Treat it like an emergency fund for health expenses
● Make regular contributions, even small ones, to build the balance
● Use it for unexpected medical costs so you don’t have to dip into credit cards or other savings
● Invest a portion of your balance if possible, and allow it to grow tax-free
● Save receipts for qualified expenses—you can reimburse yourself later
Looking for a Credit Union in Lowell, Indiana?
When it comes to managing healthcare expenses, preparation is key. A Health Savings Account is one of the most effective tools available to individuals and families who want to save smartly and spend wisely on medical needs.
If you're ready to open an HSA or want to learn more about how it fits into your financial goals, a local credit union in Lowell, Indiana can help. At Tech Credit Union, we offer our members personalized guidance, flexible account options, and the support you need to take control of your health and your finances — one contribution at a time. Contact us today to learn how we can serve you.
