Health Savings Account (HSA)
Get well - and stay healthy - with the help of a smart saving strategy.
Rising health care costs affect almost everyone - particularly those with high-deductible insurance plans. Fortunately, there's an effective way to reduce the financial sting. A Health Savings Account allows individuals and families to set aside funds for future doctor, dental and vision care costs, earn dividends on deposits, and stretch their dollars further with the help of tax advantages.
- To be eligible, you must be covered by a high-deductible health plan and have no other health insurance
- You must also maintain an Empower Share Savings account with a minimum $1 balance
- Individuals can contribute annually. (Those over age 55 may contribute additional funds)
- Funds can be used to treat injuries and severe illness, chronic conditions, and for more routine treatment, such as dental work and vision testing; prescription costs are also covered
- Convenient access to funds with checks or special Mastercard debit card
- Contributions may be tax-deductible; dividend earnings and withdrawals for qualified care are tax-exempt
- Any funds remaining in an HSA at year's end automatically roll over to the next year and continue to earn competitive dividends
- No administrative or annual fees
Eligibility
- Must be covered exclusively by a High-Deductible Health Plan (HDHP)
- Cannot be covered by another health plan
- Cannot be enrolled in Medicare or be claimed as a dependent on another person's tax return
Contribution Limits
- Deductibles and contribution limits may be revised each year to reflect cost-of-living increases
- Contributions for a particular tax year can be made as late as April 15 of the following year
- In addition to the standard HSA contribution limits, if you have reached age 55 before the close of a taxable year, you may contribute an additional amount as a "catch-up contribution"
- Set up Direct Deposit to simplify the process
Tax Benefits
- All personal contributions are tax-deductible
- Dividend earnings are tax-exempt
- Withdrawals are tax-free when used for qualified medical expenses
- Consult your tax advisor to determine if this account is right for you
Your HSA Debit Mastercard Benefits
Empower Federal Credit Union is a full-service financial institution serving members throughout New York State.
Empowering you to make the best financial decisions.
Explore valuable tools and education to support your unique financial journey.
© 2014 Mastercard. All rights reserved. ® Mastercard, the Mastercard Brand Mark and Priceless are registered trademarks of Mastercard International Incorporated.