HEALTH SAVINGS ACCOUNTS
Save for Healthcare with Confidence
A Health Savings Account (HSA) helps you set aside money for qualified medical expenses while taking advantage of valuable tax benefits.
HSA Basics
HSAs work in conjunction with a qualified High Deductible Health Plan (HDHP) to offer the following benefits:
- Tax-deductible contributions
- Tax-free distributions for qualified medical expenses for the individual or the family covered by the HDHP
- Since there is no time limit on when to spend your HSA funds, any unused balance carries over from one year to the next
Since there is no time limit on when to spend your HSA funds, any unused balance carries over from one year to the next.
| Dividend Rate | APY |
|---|---|
| 0.30% | 0.30% |
How Can I Use My HSA?
You can use HSA funds to pay for deductibles, copayments, coinsurance, and other qualified medical expenses. Withdrawals to pay eligible medical expenses are tax-free. To be qualified, medical expenses must be incurred after the account is opened. Refer to IRS publications 969 and 502 for more information and a complete list of qualified medical expenses.
To pay for your qualified medical expense, you can use the following access methods:
- Your Penlanco FCU HSA Debit Card
- Your Penlanco FCU HSA Checks (available upon request)
If you have money in your HSA when you turn 65, you can spend it on anything you want — but if you aren’t spending it for a qualified medical expense, it will be taxed as income at your then current tax rate.