Money in the account can be used to pay for any qualified health expense permitted under federal tax law including most medical, dental, and vision services.
HSAs also provide tax deductions when you contribute to your account, tax-free earnings on your account, and tax-free withdrawals for qualified medical expenses.
You make all the decisions about saving for current or future medical expenses and when to make withdrawals.
You can continue to use the HSA even when changing jobs or medical coverage, becoming unemployed, changing marital status, or moving to another state.
HSA funds are federally insured by the National Credit Union Administration.
You must have an HSA-qualified “high deductible health plan” and meet other requirements to contribute to an HSA. Liberty FCU does not charge annual maintenance fees for Health Savings Accounts, and funds on deposit are federally insured by the National Credit Union Administration. For specific information on Liberty FCU’s HSA program, call Liberty FCU at (812) 477-9271 or 1-800-800-9271, Ext. 1284, or send us your question via e-mail. For general information on HSA plans, visit the U.S. Department of the Treasury’s HSA Web page.
Health Savings Account contribution limits increased in 2024. The maximum contribution limit for individuals with single coverage is $4,150. The maximum contribution for family coverage is $8,300. Additionally, the “catch-up” contribution limit for those age 55 or older is $1,000.Visit any Liberty FCU location to open or contribute to your HSA today!
Money in the account can be used to pay for any “qualified medical expense” permitted under federal tax law. This includes most medical care and services, dental, and vision care.
The money in the account may pay for medical expenses of the individual, spouse, or dependent children. The account can be used to pay for expenses of a spouse and dependent children even if they are not covered by the HDHP.
Any amounts used for purposes other than to pay for “qualified medical expenses” are taxable as income and subject to an additional 20% tax penalty. Examples include:
Medical expenses that are not considered “qualified.”
Other types of health insurance unless specifically approved.
Medicare supplement insurance premiums.
Expenses which are not medical- or health-related.
After age 65, the 20% additional tax penalty no longer applies. If an individual becomes disabled and/or enrolled in Medicare, the account can be used for other purposes without paying the additional 20% penalty.
Contributions to the HSA can be made by the individual, employer, or both. However, the total contributions are limited annually. Contributions can be made each year the individual is eligible. Contribution limits for 2024 are:
Individuals age 55 or older can also make additional “catch-up” contributions. The maximum annual catch-up contribution is as follows:
Contribution limits for 2023 are:
An HDHP is health insurance that does not cover first dollar medical expenses. To qualify, federal law requires the following health insurance deductible minimums:
In addition, annual out-of-pocket expenses under the plan (including deductibles, co-pays, and co-insurance) cannot exceed:
A Health Savings Account is an account to save for future medical expenses. There are certain advantages in putting money into these accounts, including favorable tax treatment. Contributions to an HSA are deductible and distributions from a HSA are tax-free when used for qualified medical expenses. An individual can invest the assets as he/she wishes, and if the assets are not spent in a given year, the balance can be carried forward to a subsequent year. Unused funds are not lost at the end of the year.
APY stands for Annual Percentage Yield. Minimum balance listed is required to purchase certificate.