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Deposit Accounts | Health Savings Account
 Health Savings Account
Savings and Insurance for Your Peace of Mind
Centra Credit Union now offers Health Savings Accounts (HSA). These accounts offer you the flexibility of a savings or checking account with the tax advantage of an Individual Retirement Account.
HSAs were designed for people who have a high out-of-pocket deductible health insurance program. This program, authorized by Federal legislation, allows you to re-direct pre-tax dollars into either an insured Centra HSA Checking Account or HSA Money Market Savings Account. You can use these pre-tax dollars to pay for future medical expenses.
How Does It Work?
To open a Centra HSA Account, you must have a high-deductible health plan. The deductible must be at least $1,100* for an individual plan and at least $2,200* for a family plan.
The maximum contributions that you can make into either the HSA Checking Account or the HSA Money Market Savings Account cannot exceed $2,850 for an individual or $5,650 for a family plan.
Your contributions to your HSA accounts are tax-free, and you can deduct your contributions to your HSA accounts on your income tax return1.
Your account balance is carried over each year. Unlike flexible spending accounts where you lose what you don't use in your account by the end of the year, your contributions will carry over. The money stays in your account and continues to earn interest.
Control over your expenses
An HSA gives you control over your health care decisions. And since you are the owner of your HSA, it doesn't matter what your job status is or whether your employer makes contributions to your healthcare plan. Your HSA will always follow you.
Some of the many qualified uses for HSA funds include paying for
- Covered medical expenses that apply to your deductible
- Qualified medical expenses that your health plan doesn't cover, such as:
- Contact lenses
- Dental and orthodontic services
- Certain types of alternative medicine
- Long-term care insurance
- Non-prescription drugs
- COBRA insurance
- Healthcare premiums for individuals receiving unemployment compensation
Tax Advantages
Contributions are tax deductible; and earnings and qualified** withdrawals are tax-free***. At age 65, accumulated funds can also be withdrawn for medical expenses not covered by Medicare - tax-free. Contributions qualify for federal tax deductibility. Any interest earned on the funds in an HSA is tax-free. Funds for non-qualified expenses are subject to income tax.
Get Started Today
For more information, or to open your Centra HSA, call 1-800-232-3642 or visit any Centra office.
* These are the limits for 2007.
** Qualified medical expenses as defined under section 213 of the IRS Code.
*** Please consult your tax advisor for tax advice.
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