Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-deductible savings account. Withdrawals are tax-free when the money is used exclusively for paying or reimbursing qualified medical expenses (doctor visits, prescription drugs, over-the-counter medicines prescribed by a doctor) of the account owner, spouse and dependents.

To make contributions to an HSA the account owner must meet all of the following requirements:

medicine bottle
  • Is covered under a High Deductible Health Plan (HDHP)*
  • Is not covered by any other health plan
  • Is not enrolled in Medicare
  • Cannot be claimed as a dependent on another person's tax return

*A High Deductible Health Plan is a medical insurance plan with a minimum annual deductible and a maximum out-of-pocket expense cap.

2014 HDHP Deductibles

  • Minimum annual deductibles are $1,250 for single coverage or $2,500 for family coverage.
  • Annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) cannot exceed $6,350 for single coverage and $12,700 for family coverage.

The maximum contribution limit is:

Year Single Family Catch-up provision
(age 55 and over)
2013 $3,250 $6,450 $1,000
2014 $3,300 $6,550 $1,000

Contributions for the current year can be made until April 15 of the following year.

Start saving for future healthcare today!

LGFCU Documents

HSA Disclosure

Health Savings
Rate: 1.50
APY: 1.51
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APY: Annual Percentage Yield
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