Health Savings Accounts

Save for future health care expenses with a Health Savings Account!

Health care costs are rising. Higher deductibles, copays, and benefits premiums are being passed on to employees as companies try to cut their costs and save money. A Health Savings Account is used for paying or reimbursing qualified medical expenses to the credit union member, dependent(s), or spouse. These accounts provide a way for employees to manage health care costs through individual flexibility, control, and tax savings. Talk with us today about how you could benefit from a Health Savings Account at Members 1st!*

Why would I want a Health Savings Account?

Health Savings Accounts carry a whole host of benefits:

• Qualified contributions are fully tax-deductible (employer contributions may be excluded from your gross income)
• Qualified distributions are tax-free
• Money saved can be applied directly to unexpected or high medical bills
• Contributions may be made any time during the year, and balances roll over from year to year
• Health Savings Accounts can continue even if you change jobs.

How does it work?

Health Savings Accounts are held as a tax-exempt trust account. Contributions to the account may be made by the member, his or her employer, family members, or other individuals. Health Savings Accounts are portable! This means that the account can be maintained even if you change employers. Accounts may also be transferred between financial institutions. If you currently have a Health Savings Account, consider transferring it to Members 1st!

Am I eligible?

To be eligible to have a Health Savings Account, the individual:

• Must be covered by a qualified high-deductible health plan as defined by IRS
• Cannot be enrolled in Medicare
• Cannot be claimed as a dependent on someone else's federal income tax return

Are there limits to my contribution?

Yes. The contribution limits set by the IRS for 2008 are:

Single Coverage Annual Limit:	$2,900.00
Single Coverage Monthly Limit:	$241.67
Family Coverage Annual Limit:	$5,800.00
Family Coverage Monthly Limit:	$483.33
The annual contribution deadline is April 15th of the following year. Contributions may be carried over from year to year.

How do I open a Health Savings Account?

To open a Health Savings Account, you must be enrolled in a qualified high-deductible health plan. This carries an advantage - you'll have lower premiums to pay!

Visit any branch to open a Health Savings Account.

Who can I talk to if I have questions?

Contact one of our IRA Specialists at (800) 283-2328, ext. 6022.

*Not intended as tax advice. Please consult a tax professional.