Taking Control of Your Health Care Expenses
A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. Contributions to the account are tax-deductible, and withdrawals are tax-free for qualified medical expenses. HSAs were created to help consumers lower the cost of their health care by giving them an incentive to switch to higher deductible insurance coverage.

Unlike the flexible spending accounts that most people are familiar with, there is no “use-or-lose” provision. You can carry over unused money to the next year, and accumulate a large amount of cash to pay for future medical expenses.

Who Qualifies?
You must have coverage under a qualified “High Deductible Health Plan” (HDHP) before you can open and contribute to an HSA. Generally, this is health insurance that does not cover first dollar medical expenses. There are deductible and out of pocket limits that adjust each year. Here are the 2008 numbers:

Among other requirements, you cannot be covered under another non-HDHP, you can't be enrolled
in Medicare, and you can't be eligible to be claimed as a dependent on another individual's tax return.

How Much Can I Contribute?
There are annual limits on how much can be contributed to your HSA. For 2008, you can contribute up to $2,900 if you have a self-only HDHP, and $5,800 for family coverage. If you are age 55 or older, you can add $900 to the above limits.

All contribution limits must also be pro-rated if you do not have HDHP coverage for the entire calendar year.

What Are “Qualified” Medical Expenses?
They include most medical care and services, dental and vision care, and drugs. You generally cannot use the money to pay for medical insurance premiums, except under specific circumstances, including COBRA continuation coverage, long-term care insurance and Medicare premiums.

You can use the money in an HSA to pay for medical expenses for yourself, your spouse, and your dependent children. Any amounts used for purposes other than qualified medical expenses are taxable as income and subject to an additional 10% penalty.

Here’s Our Product…
A Sioux Falls Federal Credit Union HSA gives you the high rates of a savings account, with the convenience and access of a checking account. Deposits can be made in-person or through payroll deduction and our HSA Check Card can be used at the doctor’s office or at any ATM.

Check out our current rates, and stop by any of our four offices for more details.