Health Savings Account

A tax-advantaged* way to pay for qualified medical expenses

Rising medical costs in California and throughout the country have many people searching for ways to make their health care dollars go further. One of the most powerful tools to help you accomplish that goal is a Health Savings Account (HSA) from San Mateo Credit Union. When coupled with a high-deductible health plan (HDHP), an HSA provides tax-related benefits*, a competitive interest rate, and a debit card and/or checks to pay for your qualified medical expenses.

We'll cover some of the basic features of HSAs here. If you still have questions, don't worry. These are complex accounts, so please don't hesitate to visit your local SMCU branch to get the answers you need.

The triple tax benefit of health savings accounts

HSAs enjoy tax-advantaged treatment that can be great for you as the account holder. Under IRS rules you can enjoy three tax benefits, known as the triple tax advantage:

1. Your contributions are pre-tax, like a 401(k);
2. Investment gains inside the HSA are not taxable; and
3. Withdrawals are not taxed so long as the money is used to pay for qualified medical expenses.

You are eligible to contribute to an HSA if you:

• Are covered under a high-deductible health plan (HDHP)
• Are not covered by any other health insurance plan
• Are not enrolled in Medicare
• Are not a dependent on another individual's tax return

Yours to keep

The money in an HSA stays with you, and funds are always accessible through a special HSA Visa® Debit Card. That means any unused funds stay in your account - you do not lose the money. And, if you change jobs, change health plans, or retire, you get to keep your account.

To open a Health Savings Account please visit one of our branch locations.