A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are some great advantages to putting money into these accounts, including:

·         Protection – You will have an opportunity to save money to pay high or unexpected medical bills.

·         Affordability – High health insurance policy deductibles mean lower premiums.

·         Savings – Your ability to deduct your contributions and the tax deferral of account earnings enables you to build your account.

·         Flexibility – You can contribute at any time during the year, and your HSA balance rolls over from year to year.

·         Portability – You own the account, so it goes where you go, regardless of any job changes.

 

Any adult can contribute to an HSA if they:

·         Have coverage under a qualified “High Deductible Health Plan.” (HDHP)

·         Are not covered by another health plan.

·         Are not enrolled in Medicare.

·         Cannot be claimed as a dependent on someone else’s tax return.

High Deductible Health Plan deductibles and contribution limits are revised each year to reflect cost-of-living increases. Contributions for a particular tax year can be made as late as April 15^th of the following year.

Annual Contribution Limit	Individual	Family
Under Age 55	$2,900	$5,800
Age 55+	$3,800	$6,700

 In addition to the standard Health Savings Account contribution limits, if you have attained age 55 before the close of a taxable year, you may contribute an additional amount known as a “catch up contribution.” The catch-up contribution limit for 2007 is $800 and the catch-up contribution limit for 2008 is $900.

 

·         All contribution are tax deductible

·         Earnings (dividends) are tax exempt

·         Withdrawals are tax free when used for qualified medical expenses

 

Federal Insurance on your Deposits – A-K Valley FCU is federally insured by the National Credit Union Administration (NCUA), a U.S. Government Agency.

 

It’s easy to apply! Stop into any one of our office locations and apply for your HSA today! Please contact us if you have any questions or if we can help you in any way.