Health Savings Account

Health Savings Account

Save for medical expenses with a Health Savings Account (HSA). Protect yourself against the financial impact of catastrophic medical expenses and pay a lower premium with a qualified health savings account. As a tax-advantaged medical savings account, an HSA provides you with a tax-free way to pay for qualified medical expenses. By combining your HSA with an HSA-qualified High-Deductible Healthcare Plan (HDHP), you can save for future medical expenses and receive favorable tax treatment.

To qualify you must meet all these requirements:

  • Be covered under an HDHP (High-Deductible Healthcare Plan).
  • Not be covered by any other health plan that is not an HDHP.
  • Not be enrolled in Medicare.
  • Not be claimed as a dependent on another person’s tax return.

Advantages of Health Savings Accounts (HSA’s)

  • Security: Financial protection against high medical bills.
  • Affordability: Lower health insurance premiums.
  • Flexibility: Payments for current or future expenses.
  • Savings: Investment earnings.
  • Control: How much to deposit and when to use funds.
  • Portability: Job change, relocation to another state or marital status change.
  • Ownership: No “use it or lose it” rules.
  • Tax savings: Deductions for contributions, tax-free earnings and tax-free withdrawals.
  • You may make contributions for the current year until Tax Day of the following year. You may use tax-free withdrawals for qualified medical expenses.

Shoreline Credit Union offers an interest-bearing checking account for your HSA deposits — both checks and a debit card are available.