Health Savings Accounts (HSAs)

Health Savings Accounts (HSAs) were created in 2003 by the U.S. government to help people save for qualified medical expenses. HSAs allow you to provide a source of funding for any future medical expenses not covered by your insurance and, at age 65, any unused funds can even be applied to your retirement. Additional benefits include: tax-deductible contributions*, tax-free withdrawals* and account portability.

Eligibility
To qualify to open a HSA, you must:
1. Be under 65
2. Be covered by a qualified High Deductible Health Plan, not covered by either another health insurance carrier or enrolled in Medicare
3. Not be claimed as a dependent by another person

Contributions
Contributions made with pre-tax monies giving you 100% tax deductibility. Contributions can be made by you, a family member, an employer or just about anybody willing to give you money. HSAs allow people an unprecedented contribution schedule as well, including lump sum contributions once a year. "Catch up" contributions are also allowed for individuals who open accounts after the age of 55.

Distributions
While earnings accumulate tax-deferred, withdrawals for qualified medical expenses to cover you, your spouse or your dependents are all tax-free. Whatever funds aren't used, can be used to supplement your retirement.

Other Benefits
In addition to the flexible contribution schedule, HSAs offer these perks:
1. HSAs allow you to opt for a higher deductible with your own insurance, resulting in a lower insurance premium
2. These accounts stay with you even if you change jobs
3. Spouses can inherit the account with no tax consequences
4. The account can be used for withdrawals in person at a LAFCU branch, by mail or with an HSA Check (debit) Card.

Other Details
Only e-Branch inquiries can be done with an HSA account.
HSA is NOT available for check writing, Shared Branch access, or Courtesy Pay services.
To open your HSA* account today, call us at (877) MY LAFCU (695-2328), or stop by a branch.

For frequently asked questions about HSAs, click:
http://www.treasury.gov/resource-center/faqs/Taxes/Pages/Health-Savings-Accounts.aspx

For more HSA info, click:
http://www.hsainsights.com/Health-Savings-Accounts-Still-Offer-Great-Value-to-Consumers.html

*One HSA per member. No minimum balance. Inherited accounts are still considered HSAs and are subject to no tax consequences unless unqualified withdrawals are made. Not intended as tax advice, please consult your tax advisor for details.