If you have a high-deductible health insurance policy and need an account to save money for health care costs, a CRCU Health Savings Account (HSA) is a great choice.
You contribute a portion of your income before taxes, reducing the amount of federal income tax you pay. Then, you make tax-free withdrawals to pay for expenses such as:
- Office visit co-payments
- Eye care
- Contribute on a pre-tax basis
- Distributions for qualified medical expenses are tax-exempt
- Investment income grows tax-deferred
- Any extra money in your account at year end rolls over to the next year
- If you changes jobs, your account remains in place with CRCU.
- When your Medicare coverage begins, you can access your funds without penalty. However, you pay income tax on these distributions if they are for non-qualifying medical expenses.*