For participants in a high deductible health insurance plan, a Health Savings Account (HSA) is an excellent way to plan for medical expenses and reap pre-tax benefits. At First United CU, we’ve combined this account with a Checking and Debit Card feature for added convenience.
How HSAs work:
According to Healthcare.gov, an HSA lets you set aside money on a pre-tax basis to pay for qualified medical expenses. The site adds that “by using untaxed dollars in an HSA to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs.”
Many expenses qualify:
While HSA funds generally cannot be used to pay premiums, eligible expenses may include medical, dental, and mental health services. (For details, see IRS Publication 502.) You can generally include medical expenses you pay for yourself, as well your spouse or dependent. For details, you can learn more here.
Combine the flexibility of a First United CU Checking account — and the tax benefits of an HSA.
If enrolled in a high deductible health insurance plan, a Health Savings Account (HSA) at First United CU can help you save toward future medical expenses — tax-free. Use the funds for various medical expenses and enjoy the transaction flexibility of a Checking Account.
- No minimum balance requirements — with no opening, maintenance, or transaction fees.
- Earn a competitive .50% APY*.
- Enjoy a free Debit Card and unlimited transactions.
- Monitor funds, make transfers, and track balances via Online and Mobile Banking.
- Track expenses with convenient eStatements.
- Funds roll over each year and grow until retirement.
- Earnings are tax-free when used for a qualified medical expense.
- At age 65, withdrawals from an HSA can be made for any purpose (beyond medical expenses), subject to normal income taxes.
- Doctor’s office visits
- Vision expenses
- Dental expenses
- Long-term care insurance
When you put your funds into a First United HSA Checking Account, you can make convenient payments for qualified medical expenses with a Debit Card or by check. You also gain 24/7 access with Online and Mobile Banking, while eStatements present all HSA expenditures in a given tax year in one place.
Earn a .50% APY*
You’ll earn interest on your HSA Checking Account, paid monthly. So as you gain valuable tax benefits today, you also receive a competitive return on your money.
- $3,650 single coverage
- $7,300 family coverage
Individuals age 55 and older may be permitted to make an additional $1,000 “catch-up” contribution. For more on contribution limits, click here.
Funds Are Never Forfeited.
Unlike other types of tax-favored accounts, such as Flexible Spending Accounts (FSAs), the money in your HSA Checking is yours — with no “spend it or lose it” stipulation. HSA funds can be used for non-medical expenses, but the funds will be subject to income tax and a 20% IRS penalty. (Penalty does not apply after age 65).
We recommend you save all HSA transaction receipts. If you have specific questions, please consult your tax advisor.
Open Your Account Today!
Not only will you gain tax benefits and keep medical expenses organized, but you’ll also earn an excellent APY. Call or text 616.532.9067 for more information or to get started with your HSA Checking Account.