Health Savings Accounts

Rising costs of medical and healthcare costs are a concern for many people today. Health Savings Accounts (HSAs) were established by the Medicare bill by President Bush on December 8, 2003 and were designed to help individuals save for qualified medical and healthcare costs on a tax-free basis.*

Benefits to Members include:

• Tax deductions for contributions
• Contributions can grow in the account for years
• Dividends in the account are tax-free
• Account belongs to the member

Federal credit unions may now offer qualified members the opportunity to establish a Health Savings Account, and beginning September 11, 2006, Houston Federal Credit Union will begin offering these valuable accounts. According to the Medicare bill, members are eligible for HSAs if they are enrolled in a high deductible medical plan of at least $1,050 if individual and $2,100 if a family plan with out-of-pocket expenses not to exceed $5,250 for individual and $10,500 for a family plan.** These numbers are slightly changed from 2005 according to the United States Treasury Department www.treas.gov.

If your medical plan qualifies as a high-deductible plan, contact us today and let us help you save money and plan for future medical expenses!

*This article is not intended as tax advice. Consult a tax advisor regarding the deductibility and contribution limits.

**Other criteria may apply for Health Savings Account eligibility.