What are the basic tax benefits of an HSA?
What are the basic tax benefits of an HSA?
There is a triple tax benefit to an HSA. You can contribute pre-tax dollars, pay no taxes on earnings, and withdraw the money tax-free now or in retirement to pay for qualified medical expenses. This information is not designed, meant, nor does it constitute the rendering of legal or tax advice.
How much can I contribute to my HSA Account?
How much can I contribute to my HSA Account?
| Tax Year 2025 | Tax Year 2026 |
| Self: $4,300 | Self: $4,400 |
| Family: $8,550 | Family: $8,750 |
What is a High-Deductible Health Insurance Plan (HDHP)?
What is a High-Deductible Health Insurance Plan (HDHP)?
An HDHP is a plan with typically lower premiums but higher deductibles than traditional insurance plans. A deductible is the amount you must pay out-of-pocket before the insurance company will pay for a claim. The premium is the amount of money paid to the insurance company periodically/monthly for the policy.
For 2026, the IRS defines a high deductible health plan as any plan with a deductible of at least $1,700 for an individual (self-only coverage) or $3,400 for a family. Visit this IRS resource for more information.
Do all funds in my HSA need to be used within the year?
Do all funds in my HSA need to be used within the year?
The money in your HSA is yours to keep for life, even if you switch employers or healthcare plans, or you retire. At the end of each year, any unused funds will continue to roll over for life. In other words, the funds in your HSA aren’t “use it or lose it.”
What qualifies as an HSA expense according to the IRS?
What qualifies as an HSA expense according to the IRS?
Although qualified expenses are subject to change annually by the IRS, costs considered to be medically necessary are generally considered as qualified. Expenses that are for elective procedures (such as cosmetic purposes), are not. Withdrawing funds for non-healthcare related reasons (unqualified expenses) may result in penalties. The penalty can be up to 20% of the costs if you’re under 65, and the withdrawal is taxable. Visit this IRS resource for more information.
Can HSA funds be used for retirement?
Can HSA funds be used for retirement?
If you end up not using your HSA funds for medical expenses, you can save your money for retirement. As long as you are 65 years or older, you are allowed to withdraw funds for non-medical expenses. You may still need to pay income tax upon withdrawal, but you may not have to pay additional penalties.
Can my dependent also get an HSA debit card?
Can my dependent also get an HSA debit card?
If you have a family plan, you can order a debit card in the name of your spouse or dependent. This provides more options to you and your family members to access your health savings account. To order a card for your spouse or dependent, simply visit a branch or call Member Services at (800) 552-4745.
Additional HSA Resources
Additional HSA Resources
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