A Health Savings Account (HSA) combines the protection of health insurance with a tax-advantaged savings account.
You must be covered by a High Deductible Health Plan (HDHP) to take advantage of an HSA. An HDHP generally costs less than traditional health care coverage costs, so the money you save on insurance may be put into the HSA.
If you are covered under a HDHP, are NOT covered under any other health plan, are NOT enrolled in Medicare, cannot be claimed as a dependent on someone else’s tax return, and have not been a recipient of veterans medical benefits in the previous three months, then you are eligible to establish an HSA.
An HSA lets you control how you save, invest, and use your healthcare dollars.
Because you fund the HSA with pre-tax money, you're using tax-free funds for healthcare expenses you'd normally pay for out-of-pocket. Your HSA contributions don't count toward your taxable income for federal taxes. They're not taxable in most states, as well.
Money in your HSA always belongs to you, even if you change employers. Plus, unused funds carry over from year to year so you never have to worry about losing your money. With an HSA, your account can grow tax-free in a GLCU interest-bearing savings account. Of course, your funds are always available if you need them for qualified healthcare expenses.
Complete the form below to request more information from a Health Savings Account expert.
You can use HSA funds for IRS-approved items. Examples include:
- Doctor's office visits
- Dental services
- Eye exams, eyeglasses, contact lenses and solution, and laser surgery
- Hearing aids
- Orthodontia, dental cleanings, and fillings
- Prescription drugs and some over-the-counter (OTC) medications
- Physical therapy, speech therapy, and chiropractic expenses
You can also refer to IRS Publication 969.
Every time you use your HSA, save your receipt in case the IRS asks you to prove that your claim was for a qualified expense. If you use HSA funds for a non-qualified expense, you'll pay tax and penalty on the ineligible amount.
Visit one of our many branches to open a Health Savings Account or call (800) 982-7850 to speak to a GLCU representative.