Health Savings Accounts are tax favored consumer savings arrangements for individuals and families covered by high deductible insurance plans.
A Dawson Co-op Credit Union HSA enables you to take control of your health care decisions. It offers you protection, affordability, savings, and flexibility.
- You must meet certain requirements to be eligible for an HSA; most importantly, you must be covered under a high deductible health plan (HDHP). An HDHP generally has lower premiums than other types of health plans, but also has higher deductibles. Until your deductible is met, you must pay for all your medical expenses – except for preventive care, which is almost always covered. Assuming your HDHP is HSA-compatible, you can use your HSA assets to pay for these expenses.
- An HDHP is considered HSA-compatible if it satisfies the annual deductible and out-of-pocket expense limits. Check with your health insurance provider to see if your health plan meets these requirements.
- Besides having coverage under an HDHP, to be eligible for an HSA, you
- cannot be covered by another health plan (with limited exceptions),
- cannot be enrolled in Medicare, and
- cannot be eligible to be claimed as a dependent on another person’s tax return.
Funding your HSA:
HSA contributions must be made by your tax return due date, and generally are tax-deductible. The maximum amount you (and/or your employer) can contribute to your HSA each year depends on if you have self-only or family HDHP coverage. Also if you attain age 55 before the close of a taxable year, your contribution limit increases by $1,000 for the annual catch-up contribution.
►Savings tool with investment earnings.
►Flexibility to pay current medical expenses or save for future needs.
►Balance carries over from year to year.
►Remains with you, regardless of change in coverage or employment.
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