Health Savings Accounts
A Health Savings Account is used together with a high deductible
health plan as an alternative to traditional health care plans.
A health savings account is a tax-sheltered savings account similar to an IRA, but designated specifically for medical expenses. Deposits are tax-deductible and can be easily withdrawn by check or debit card to pay routine medical bills with tax-free dollars.
The balance not used from the account each year stays in the account and continues to grow interest on a tax-favored basis to supplement retirement, similar to an IRA - it's like a medical IRA.
Benefits of your Veridian HSA
Opening an HSA at Veridian Credit Union comes with several benefits:
- A Savings and Checking Account with a Visa® Debit Card are available
- Your HSA is an interest bearing account
- Invest HSA funds in stocks, bonds, Certificates of Deposit, annuities and mutual funds. These assets are held in your brokerage account and can be managed by the HSA account holder or by your investment professional.
To qualify for an HSA
To be eligible for an HSA all of the following must apply to you:
- You must be covered under a high-deductible health care plan
- Not covered under another health care plan, other than your high deductible plan
- Not eligible for Medicare
- Not a dependent
If you have questions about whether you qualify, contact your employer's human resources department.
What classifies as a high deductible plan?
Ask your employer's benefits specialist to determine if a high deductible plan is
available to you and if you qualify for an HSA.
Contributing to your HSA
There are no limits on who can contribute to your HSA, however, there are contribution
amount specifications.
- There are limits on the amount you are able to contribute to your HSA per year. Contact your Human Resource Department for assistance in determining your annual contribution
- If you're age 55 years or older by the end of the taxable year, and have not enrolled in Medicare, you can contribute an additional amount - contact a Veridian representative for specific amounts
- Your federal income tax return due date (April 15) is also your deadline for contributions
Your HSA responsibilities
With your HSA, you are responsible for determining your allowable annual contribution and whether you have qualified
medical expenses eligible for reimbursement.
Contact your tax advisor with questions on specific tax details regarding your HSA and tax liability.
Monthly service fees may apply. View our schedule of fees.
