HSA Health Savings Account from River Town FCU
At River Town Federal Credit Union, we offer convenient and beneficial HSA or health savings account plans. Learn more about how they work and the benefits of health savings accounts below.
What are qualified medical expenses?
In order for HSA assets to retain their tax-free status, they may only be withdrawn and used for certain expenses, including:
- Actual medical expenses, including doctor visits, prescriptions, transportation to get medical care, and dental care
- Long-term care insurance
- Healthcare coverage when unemployed
- Certain continuation-of-benefit healthcare coverage
- Certain health insurance after age 65
Nonqualified uses of HSA or health savings account assets are subject to taxation and a 10% penalty unless the HSA account beneficiary is aged 65 or older, dies, or is disabled.
Visit the IRS website at www.irs.gov for more information about qualified medical expenses
What are the HSA contribution rules?
The total amount you may contribute to an health savings account for any taxable year is dependent upon whether you have individual or family coverage under a high deductible health plan (HDHP) as shown in the table below.
|2021 HSA Contribution Limits*|
|Plan Coverage||Self Only||Family|
|Annual Contribution Limit||$3,600||$7,200|
In addition to the standard HSA contribution limits shown in the table, if you have attained age 55 before the close of a taxable year, you may also contribute an additional amount known as a “catch-up” contribution. The catch-up contribution limit is $1,000.00 for 2021.
After you’ve opened your HSA account, you will be issued an HSA debit card that can be used for medical expenses. You will be responsible for keeping receipts for your transactions, in the event they are requested by the IRS.
If you already have a savings and checking account with River Town, give us a call at 479-784-5600 and we can add your HSA account today!
If you’re new to River Town, joining our credit union and opening your account is easily done online!
* HDHP and contribution limitations for health savings accounts are revised each year to reflect cost-of-living increases.
The information on this page is provided by Ascensus Retirement Services and the IRS, and is not intended as tax advice. Please consult a tax professional.