Secure Your Health & Financial Well-Being with a Compass Health Savings Account
A Health Savings Account (HSA) is a tax-favored consumer savings arrangement available for individuals and families covered by certain High Deductible Health Plans (HDHPs). These arrangements allow for tax-deductible contributions and, in turn, permit tax-free distributions when the distributed amounts are used for qualified medical expenses. CCU offers a Health Savings Account as a checking account that earns dividends and includes a debit card for convenience.
Key Features:
- Tax-Advantaged*
- No Monthly Service Fees
- Free Online Banking, eStatements, and Bill Pay
Benefits:
- Expenses can include: doctor’s office visits, prescriptions, vision expenses, dental expenses, and many more.
- Contributions can be made by you, your employer, or anyone.
- You own the account. It goes where you go, regardless of career or life changes.
- The balance in your HSA at the end of the year is carried over to the next year.
- HSA dollars never expire – no “spend it or lose it.”
- HSAs can provide additional retirement savings.
- At age 65, you can withdraw from your HSA for any purpose (not just medical) subject to normal income taxes. *
Eligibility:
The following four statements must be true before your HSA is established:
- You are covered by an HSA-compatible HDHP as of or before the first day of the month in which you establish your HSA.
- You have no other health insurance coverage.
- You are not enrolled in Medicare/Tricare.
- You cannot be claimed as a dependent on someone else’s tax return.
Contribution Limits:
For 2024, the contribution limit for self-only HSAs is $4,150. The contribution limit for family coverage is $8,300. If you are age 55 or older, you can make an additional $1,000 catch-up contribution to your HSA.
*Consult a tax advisor.