Now you can plan for unexpected medical costs and receive the advantages of a tax-sheltered savings account. Enjoy two benefits in one account when you open a free IAACU Health Savings Account.
What is an Health Savings Account (HSA)?
A Health Savings Account is a tax-sheltered savings account designed to be used in conjunction with a high-deductible health plan, otherwise known as an HDHP. HSA contributions are used to pay current and future medical expenses.
Money deposited to the account is 100% tax-deductible, and you can withdraw the funds to pay any qualified medical expenses tax-free. If the distributed amount is used for anything other than a qualified medical expense the amount can be taxed. Money in the account can be rolled over from year to year without a penalty, and the funds will continue to draw interest tax-free. Contributions to your personal HSA can be made by you, your employer or both. (If a contribution is made by the employer it is not taxable to the employee.)
Advantages of an IAACU Health Savings Account
- It's Free:
- No set-up fee
- No maintenance or monthly fees
- No annual fee
- No transaction fees
- Deposits Insured - up to $500,000
- Short and Long Term Investment Options
- HSA Checking
- Share Certificate Options. These are commonly referred to in banking as Certificates of Deposit or (CDs)
- Always talk to a Real Person
- Easy set-up and access to your deposits
Current Year Contributions
For 2019 you may contribute up to $3,500 (if you’re 55 or older additional catch-up contributions are allowed up to $1,000) if you have single coverage. For a family plan, you may contribute up to $7,000. All HSA accounts are NCUSIF-insured to $250,000 and $250,000 by Excess Share Insurance.
- Must be covered under a High-Deductable Health Plan (HDHP).
- Cannot be enrolled in Medicare.
- Must be covered under a HDHP on the first day of the month in which the first contribution is made.
- Dependent children cannot have their own HSAs.
- Individuals electing to participate in an HSA must be insured by a HDHP that has a $1,350 minimum deductible with annual out-of-pocket expenses not exceeding $6,650.
- Families electing to participate in an HSA must be insured by a family health plan with a minimum deductible of $2,700 and annual out-of-pocket expenses not exceeding $13,300.
- You should consult your tax adviser or insurance provider with additional questions or to determine your plan's eligibility.
Not sure if an HSA is right for you? We’ll be glad to help you with all the details. For more information, or to open your tax-deductible HSA, contact an IAACU member services representative today!
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