MCU - Members Credit Union

When it comes to saving money for future medical expenses and retirement, a Health Savings Account from Members Credit Union is a great realtime option. This is one of those accounts that reduces your taxes and is encouraged by the U.S. government (signed into law by President Bush on December 8, 2003). And we've got them for you at MCU.

Simply put, a Health Savings Account (HSA) is an easy way to save for future medical expenses and for retirement. But the advantages don’t stop there. There are certain tax advantages to putting money into these accounts too. Your contributions are tax deductible and the interest you earn on this account is not taxable, just like an IRA.

Any adult can contribute to an HSA if they:

Have coverage under an HSA-qualified “high deductible health plan” (HDHP)
Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or longterm care insurance are permitted)
Are not enrolled in Medicare
Cannot be claimed as a dependent on someone else’s tax return

Contributions to your HSA can be made by you, your employer, or both. However, there is an annual contribution limit. If you make a contribution, you can deduct them (even if you do not itemize deductions) when completing your federal income tax return.

Contributions to the account must stop once you are enrolled in Medicare. However, you can keep the money in your account and use it to pay for medical expenses tax-free.

Another law that passed in late 2006 was the Tax Relief and Healthcare ACT of 2006. This law made improvements to the original law passed in 2003. To find out more about HSA accounts, visit http://www.ustreas.gov/offices/public-affairs/hsa/ visit with your health insurance agent or just give us a call or visit any MCU branch!