Have more flexibility and Security with Health Care Costs
WFCU Health Savings Account
A Health Savings Account (HSA) gives you more flexibility and control over your health care costs. That’s because it empowers you to make your own health care decisions. Use Pre-Tax dollars to pay for future medical expenses. You will be able to deduct your contributions to your Health Savings Account, and the account earnings will accumulate on a tax-deferred basis. Best of all, distributions from your HSA are tax-free if they are used for qualified medical expenses.
How to Save for Healthcare Costs
To open a Health Savings Account, you must select a high-deductible health plan. The major advantage of a high-deductible plan is lower premiums.
To contribute to your Health Savings Account you must enroll in a high-deductible health plan before you can make HSA contributions. Your employer’s contributions to your Health Savings Account are tax-free, and you can deduct your own contributions to your Health Savings Account on your income tax return.
The high-deductible health plan provides you with protection from catastrophic medical costs, and the Health Savings Account provides you with a source of funds to pay some or all of the costs not covered by the health plan.