Health Savings Accounts and You

At Firefighters & Company Federal Credit Union, we strive to provide ways to support you in all aspects of your financial life, which is why we provide HSAs (Health Saving Accounts). No one should feel unprepared in the face of a medical emergency, and a HSA with FFCOCU can set your mind at ease.

So how is a HSA different from any other savings account? Well, HSAs are tax-advantaged savings which means that it’s a fund specifically crafted for medical costs that is tax-free now and in the future, as long as the money is used for qualified medical expenses.

To be eligible for a HSA, you must be enrolled in a high-deductible health plan (HDHP). Talk to your employer to see if you are eligible. And while that could mean your HDHP will cause you to pay more out of pocket before your insurance pays, the benefit is that you will most likely get lower monthly premiums and the option to continue putting additional tax free money into your HSA (up to a yearly limit determined by the IRS), just in case your medical costs increase in any way.

The most effective part of a HSA is that letting the money grow means that you can build up enough savings to cover medical expenses even after you retire. That’s a big deal! Many people face the struggle of rising medical costs as they age, and having a cushion like a HSA can make all the difference.

But if you look at the present, a HSA can offer you some tax advantages and ensure you have money when you incur medical expenses. You are not taxed when you put money into your HSA and you won’t be taxed on the money when you withdrawal it, as long as you use the money for qualified medical expenses. (Always consult your tax advisor on any tax-related issues.)The money will continue to grow in your HSA. Another great component of the HSA is, it is your money and even if you leave your employer, the HSA is yours to keep, to pay your medical expenses now and in the future.

Here are some common qualified medical expenses:

  • Dental treatment
  • Doctor’s office visits and copays
  • Surgery (except cosmetic surgery)
  • Eye exams and eyeglasses
  • Flu shots
  • Physical therapy
  • Drug prescriptions
  • Go to https://www.irs.gov/publications/p502 for a full list of eligible expenses

Interested? Just curious to learn more about how an HSA can protect you and your family in the face of a medical emergency? You’re in luck then, because FFCOCU offers a competitive HSA with easy access to your money and personal local service to help you in any way we can.

To find out more, go to: Health Savings Account page or call us at 937-228-1614.

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