health savings account

 

what are health savings accounts?

You may have heard about Health Savings Accounts (HSAs) in the news as a new way for individuals to pay for health care costs. But what is a Health Savings Account?

HSAs are individual accounts that allow you to use pre-tax dollars to pay for future medical expenses. You can deduct contributions to your HSA and the account earnings will accumulate on a tax-deferred basis. Distributions from your HSA are tax-free if they are used for qualifies medical expenses. HSAs are designed specifically for individuals who have chosen a high-deductible health plan (HDHP).
 

how much can I contribute?

Individuals or an employer may make contributions to a Health Savings Account. If you participate in a Health Savings Account, you may not participate in a flexible spending account held by you or a spouse or any other Health Savings plan. Your contributions are also limited by the regulations established annually by the IRS.
 

2016 health savings account contribution limits

Individuals - $3,350
Families - $6,750
 

Taxpayers age 55 or older are entitled to an additional catch-up contribution of $1,000.
 

what are qualified medical expenses?

Prescription drugs, qualified long term care service, qualified long term care insurance, COBRA coverage, Medicare expenses and any retiree health expense for individuals age 65 and older.
 

benefits of a health savings account

  • No Minimum Balance
  • No Monthly Service Charge
  • No Per Check Charge
  • Earns Dividends*
  • Direct Deposit/Payroll Deduction
  • 24 Hour Access via Service1st@Home
To learn more about HSA’s, call one of our HSA specialists at 800.562.6049 or visit www.treasury.gov/resource-center/faqs/Taxes/Pages/Health-Savings-Accounts.aspx 

*The Annual Percentage Yield is a percentage that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. Fees could reduce earnings on account.



also see:  individual retirement account (IRA); retirement & investment center

Service 1st Federal Credit Union, 1419 Montour Boulevard, PO Box 159, Danville, PA 17821. Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government - National Credit Union Administration (NCUA), a U.S. Government Agency.

Service 1st Federal Credit Union routing number: 231387602.

*APR denotes Annual Percentage Rate and APY denotes Annual Percentage Yield. Click here or call us at 800.562.6049 for more information regarding current rates, terms and conditions. All Credit Union loan and deposit programs, rates, terms and conditions are subject to change at any time without notice.

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