Health Savings Account (HSA)

Think of it as a fund for future medical needs. Contributions are made into your HSA either by the account owner (you) or, in some cases, your employer, similar to a retirement plan or other types of savings accounts. The money you contribute into this account can be used to pay for any current or future health care cost, including elective procedures, emergency treatments, major surgeries, and the like. These contributions are taken out on a pre-tax basis, and may be able to be claimed as deductions on your taxes the following year. 

Your Genisys health savings account offers easy debit card access, allowing you to use the money in your HSA the same way you would from a checking account, making it even easier to pay for your health care services.

HSAs work in tandem with any health plan that has a high deductible. The primary aim of a health savings account is to provide both an investment in your future, and additional health coverage above and beyond what your insurance will pay for.

Generally speaking, you can use a health savings account to pay for any qualified medical expense. “Qualified medical expenses”, as defined by the IRS, include:

• Medical care
• Vision care
• Dental care
• Prescription drug expenses
• Payment for long term care services (physical therapy, etc)

You can check your health savings account balance by logging into Genisys Online Banking or by using our credit union mobile app to check your current balance, manage contributions, and more!

The easy answer is to say you should put as much as is financially viable into your HSA. The main goal of a health savings account is to help cover any incurred medical expenses, whether emergencies or otherwise, and making the maximum contributions you can afford will help provide you a safer landing cushion for any expenses that may arise.

It is important to remember that the IRS puts a cap on how much you can contribute to your HSA per year; as of 2022 the limit is $3,650. By getting as close to this amount as you can comfortably afford, you can help take further financial burden off of any needed medical procedures.

Yes! The funds in your account roll over automatically each year and remain there indefinitely, with no penalty or interest on unused funds. This allows you to continue building up your available funds in case you encounter an unexpected medical expense, even if you haven’t used the money yet.

The money you deposit into your HSA is not subjected to federal income tax at the time the deposit is made. As a result, you can deposit money at a higher pre-tax rate than you might’ve been able to otherwise. Contributions to your HSA by your employer (if your employer participates in HSA contributions) may be excluded from your gross income, which can affect your taxable income and rate the next time you file.

Additionally, HSA contributions may be able to be claimed as a deduction under certain circumstances. Talk to your tax advisor and see if your HSA contributions can be deducted from your yearly taxes.

Health Savings Accounts (or HSAs) work similar to other types of personal savings accounts, except they can only be used to pay for medical expenses. The funds in your HSA can be used at any time to pay for qualified medical expenses above and beyond what your insurance or deductible may cover. 

Genisys offers Health Savings Accounts that pay dividends on the amount in your account, helping you grow your balance above and beyond your normal monthly deposits.

Opening a health savings account with Genisys is easy! All you need to do is contact your local Genisys branch or open a HSA online to start building up your savings!

Typically speaking, you are allowed to withdraw from an HSA at any time. However, if you are under the age of 65 and withdraw from your HSA for a non-qualified expense (anything other than a medical expense), the withdrawal will be subject to specific tax penalties.

While individual circumstances may differ, most individuals eligible for a health savings account would need to meet the following criteria:

• Currently covered by a high-deductible health plan
• Not currently covered by other types of health insurance
• Not currently enrolled in Medicare
• Not eligible to be claimed as a dependent on someone else’s tax return