A Health Savings Account (HSA) is a tax-deductible savings account that helps to pay for qualified out-of-pocket medical expenses
An HSA can be opened by anyone who is eligible, regardless of income. Non-members may open HSAs through their employers. For full LGFCU benefits in addition to your HSA learn more about how to join.
The LGFCU HSA has no monthly service charge or maintenance fee. There's no deadline to take money out of the account, and no minimum deposit or balance is required to earn dividends on the account. The dividend rate is determined by the board of directors and is subject to change daily.
What is a qualified HSA expense?
You can use your HSA to pay for doctor visits, prescription drugs or over-the-counter medicines prescribed by a doctor for you, your spouse and your dependents. For a complete list of qualified HSA distributions, visit www.irs.gov and view publications 969 and 502. HSAs can have tax consequences for nonqualified distributions. Consult a tax or financial advisor for additional information about how non-qualified distributions could affect your taxes.
Who can contribute to an HSA?
An HSA owner must be:
- Covered under a High Deductible Health Plan (HDHP)*
- Not covered by any other health plan
- Not enrolled in Medicare
- Not be claimed as a dependent on another person's tax return
As a Health Savings Account Holder you will receive information about our full range of products, services and membership benefits. However, in order to take advantage of these benefits, you must also open an LGFCU Share Account.
*A High Deductible Health Plan is a medical insurance plan with a minimum annual deductible and a maximum out-of-pocket expense cap.
2015 HDHP Deductibles
Minimum annual deductibles are $1,300 for single coverage or $2,600 for family coverage.
Annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) cannot exceed $6,450 for single coverage and $12,900 for family coverage.
The maximum contribution limit is:
(age 55 and over)
Contributions for the current year can be made until April 15 of the following year.