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.