Health Savings Accounts

Health Savings Accounts

A Health Savings Account (HSA) at Circle Federal Credit Union is a tax-advantaged savings account designed to help individuals and families prepare for current and future healthcare expenses. When paired with a qualifying High Deductible Health Plan (HDHP), an HSA allows you to set aside pre-tax dollars for eligible medical costs, reducing your taxable income while helping you build a dedicated healthcare fund. Whether you're planning for routine doctor visits or unexpected medical expenses, an HSA offers flexibility, tax advantages, and convenient access to your money. 

What is a Health Savings Account (HSA)?

A Health Savings Account combines the benefits of a personal savings account with significant tax advantages. Contributions are made with pre-tax dollars (or may be tax-deductible if contributed directly), qualified withdrawals for medical expenses are tax-free, and any earnings on the account can grow tax-free as well.

Unlike a Flexible Spending Account (FSA), unused HSA funds roll over from year to year, allowing you to build long-term savings for future healthcare needs rather than losing unused funds at the end of the year.

Who Is Eligible?

Circle FCU's HSA is intended for individuals who are covered by a High Deductible Health Plan (HDHP). These health plans generally have lower monthly premiums but higher deductibles, making an HSA an effective way to prepare for out-of-pocket healthcare costs.

If you're unsure whether your health insurance qualifies, it's a good idea to consult your insurance provider or tax advisor before opening an HSA.

Flexible Ways to Contribute

Funding your HSA is simple and convenient. Members can make contributions by:

• Direct deposit from an employer.
• Personal deposits at any Circle FCU branch.
• Additional deposits throughout the year, subject to IRS annual contribution limits.

This flexibility allows members to contribute regularly or make larger deposits when financially convenient.

Easy Access to Your Healthcare Funds

• Use an HSA Mastercard® Debit Card for eligible healthcare purchases.
• Write checks directly from the account.
• Pay medical bills through Online Bill Pay.
• Visit a Circle FCU branch to withdraw funds.

These options make it easy to pay healthcare providers, pharmacies, and other qualified medical expenses without transferring money between accounts

Qualified Medical Expenses

An HSA can be used for a wide variety of eligible healthcare costs, including:

• Doctor and specialist office visits.
• Prescription medications.
• Certain over-the-counter medications.
• Dental cleanings, fillings, orthodontics, and other dental services.
• Eye exams, eyeglasses, contact lenses, contact lens solution, and LASIK surgery.
• Hearing aids.
• Physical therapy.
• Speech therapy.
• Chiropractic care.

Using HSA funds for qualified expenses allows you to pay these costs with tax-free dollars, helping reduce your overall healthcare expenses.

Keep Your Reciepts!

Whenever you use HSA funds, it's important to save your receipts and supporting documentation. The IRS may require proof that withdrawals were used for qualified medical expenses.

If HSA funds are spent on non-qualified expenses, the amount may become subject to income taxes and additional penalties, depending on your age and circumstances. Maintaining organized records helps simplify tax reporting and ensures compliance with IRS rules. 

Visit one of our branches to open an HSA today!

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