As healthcare costs continue to rise, finding ways to manage these added expenses is crucial. At North Central Area Credit Union, we’re committed to helping you take control of your healthcare costs with a convenient and versatile Health Savings Account (HSA).
Enrolled in a high-deductible health plan (HDHP)?
An HSA is a powerful tool that provides flexibility, savings, and significant tax advantages. Whether covering recurring medical expenses or preparing for the unexpected, an NCACU HSA can help you manage your healthcare costs.
The Triple Tax Advantage: A Smart Way to Save
One standout feature of an HSA is its triple tax advantage. It allows you to save on medical expenses while reducing your tax burden efficiently.
- Pre-Tax Contributions: Contributions to your HSA can be made with pre-tax dollars, depending on your employer’s payroll capabilities. Working with your payroll department can enable these pre-tax contributions, which reduce your taxable income for the year and provide immediate tax benefits. This arrangement helps you save for healthcare needs and effectively lowers your overall tax burden.
- Tax-Free Growth: The money you contribute to your HSA grows tax-free. At NCACU, you’ll earn a 0.50% APY* on your account balance, which compounds monthly. This tax-free growth ensures your healthcare savings will increase over time, providing a financial cushion when medical expenses arise.
- Tax-Free Withdrawals: You won’t pay taxes on withdrawals when using your HSA funds for qualified medical expenses—such as doctor visits, prescriptions, or even dental and vision care. This means every dollar you save can be used directly for healthcare without losing a portion to taxes.
How NCACU’s HSA Stands Out
At NCACU, we’ve designed our HSA to offer members maximum flexibility and convenience. And since our HSA is not tied to an employer plan, you have complete control over your account. Whether you’re self-employed, transitioning between jobs, or simply looking for a better way to manage medical expenses, an NCACU HSA offers an ideal solution.
- No Contribution Limits: You can contribute as much or as little as you want throughout the year without setting an amount in advance. This makes it easy to adjust your savings based on your financial situation or upcoming healthcare needs.
- Remember the annual IRS contribution limits for HSAs ($3,850 for individuals and $7,750 for families in 2024).
- HSA Debit Card: Accessing your HSA funds couldn’t be easier. With our HSA debit card, you can make purchases directly from your account for eligible medical expenses. Whether at the pharmacy or your doctor’s office, your card ensures you’re always prepared to pay for healthcare costs.
- Unlimited Deposits: You can make deposits into your HSA anytime throughout the year, giving you complete flexibility as financial needs change. This means you can contribute more during months when your expenses are lower or if you receive a bonus or tax refund.
- Easy Online Access: With NCACU’s online banking, your HSA is conveniently displayed alongside your other accounts, making it simple to track balances and manage transactions. You can even set up bill payments directly from your HSA to pay medical providers.
The Benefits Go Beyond Healthcare
Your HSA is more than just a savings tool for healthcare expenses. You can use this account as part of your long-term financial strategy by taking advantage of the tax-free growth and flexibility that HSAs offer. Since HSA funds roll over from year to year, you can accumulate savings that will continue to grow over time, potentially serving as a reserve for healthcare costs in retirement. Consult your tax advisor for specific questions and tailored advice—they’re your best resource.
Educational Tip: Be Aware of HSA Rules
While the benefits of an HSA are numerous, please remember that you’re responsible for ensuring that HSA funds are used for qualified medical expenses. Using the funds for non-qualified expenses can result in taxes and penalties. To avoid complications, we recommend consulting a tax advisor for guidance on eligible costs.
Additionally, to open and maintain an NCACU HSA, you must:
- Be enrolled in a high-deductible health plan (HDHP)
- Be a current member in good standing
- Have no other health coverage that disqualifies you from HSA participation
Why Choose NCACU for Your HSA?
At NCACU, we pride ourselves on our member-first philosophy. We’re not just here to offer financial products—we’re here to help you achieve your goals and improve the quality of your life. Our HSAs give you complete control of your healthcare savings while keeping costs low. With competitive rates, accessible online tools, and personalized member service, we make managing healthcare costs easier.
Open Your HSA Today!
Don’t wait to take control of your healthcare costs. For details or to open your HSA, call or text us at (989) 910-5135 or visit one of our branches.
*APY = Annual Percentage Yield. Rates are effective as of November 1, 2024, and are subject to change. This offer is available for a limited time and may change or end without notice. Interest is compounded and credited monthly. Other restrictions may apply. Members are encouraged to work with their tax advisor regarding the specifics of their HSA and for individual tax advice. It is the member’s responsibility to review their account transactions to ensure they qualify. North Central Area Credit Union is not responsible for ensuring transaction compliance and is not liable in the event of an audit.