A Health Savings Account combined with a High Deductible Health Plan gives you tax advantages and flexibility.
“You can’t control the unexpected when it comes to your health, but with a Health Savings Account from Firstmark Credit Union, at least you can control the cost to your family’s budget.”
A Health Savings Account (HSA) is a special tax-advantaged account designed to make healthcare more affordable for you and your family. To open an HSA, you must have a High Deductible Health Plan (HDHP).¹ Your HDHP provides protection from catastrophic medical costs, and the HSA provides you with a source of funds to pay some or all of the costs not covered by the health plan—using pre-tax dollars.
- Rates as high as 0.90 APY²
- Must have a savings account in order to open any other accounts
- Earns dividends
HSAs allow you to make tax-deductible contributions and accumulate earnings tax free.³ Plus, distributions are also tax free as long as they are used for qualified medical expenses.
It’s easy to access your account using a special debit card. HSAs can be used to pay for qualified medical expenses—from health insurance deductibles and co-payments, to medications and other out-of-pocket costs, and certain, specific insurance premiums.³
Savings Roll Year to Year
HSA funds not used each year remain in the account earning interest tax-free until they are needed to cover medical expenses at any time in the future. An HSA can be used not only to pay out-of-pocket qualified medical costs, and save for future medical expenses, but also allows your unused savings to accumulate from year-to-year, and ultimately be used in your retirement!
Your HSA account and all contributions are owned by you. It is yours even if you change jobs, change medical plans, move, change your marital status, etc. You decide when and how to use the money in your account.
Like an IRA, an HSA belongs to you, not your employer. But unlike an IRA, your employer CAN contribute to your HSA. The maximum annual HSA contribution for 2020 is $3,550 for an individual plan and $7,100 for a family plan. Your employer’s contributions are tax-free, and you can deduct your contributions on your tax returns.
For more detailed information, view the US Treasury frequently asked questions.
- You are eligible for a Health Savings Account if you are covered by a High Deductible Health Plan, and neither claimed as a dependent on someone else's tax return, nor eligible for benefits under Medicare.
- Annual Percentage Yield. Rates accurate as of September 17, 2019. Subject to change without notice. Compounded monthly. A minimum balance is required to open this account. Fees or other conditions could reduce the earnings on the account.
- Consult your tax advisor regarding the tax advantages of a health savings account.