Health Savings Account Advantages
A Health Savings Account (HSA), is a tax-exempt account where you can put money for medical expenses for you, your spouse and your dependents. These funds can be used to pay for or reimburse you for qualified medical expenses from health insurance deductibles and co-payments to some over-the-counter medications and out-of-pocket expenses.
Linn Area Credit Union’s free HSA allows you to write checks, use your HSA debit card or make a cash withdrawal when paying for any qualified medical expense. All with no monthly fees! Click here to see our tiered rates.
Check out this HSA Calculator to help you determine how much your Health Savings Account will be worth over time.
Tax-free benefits
Personal contributions to an HSA are fully deductible, the earnings grow tax deferred and distributions for qualified medical expenses are tax-free. Consult with your tax advisor for guidance.
Qualifications
You are eligible to contribute if you are covered by a high-deductible health plan (HDHP) and NOT:
- covered by other health insurance
- enrolled in Medicare
- claimed as a dependent on another person’s tax return
Guidelines & Options
Catch-up contributions are available for those age 55 or older by the end of their taxable year who are not enrolled in Medicare.
HDHP deductible minimums and contribution maximums apply.
Portability
HSAs are completely portable. You keep your HSA even if you:
- Change jobs
- Change your medical coverage
- Move to another state
- Become unemployed
- Change your marital status
To sign up or for more information, please contact us.
