Money Minutes | General Electric Credit Union Blog | Financial Resources

Do You Know What to Look for in a Health Savings Account?

May 12, 2021 | 4 minute read

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You wouldn’t keep going back to a restaurant if it was just “OK,” right? The food may have satisfied a need, but there are other restaurants out there whipping up tastier, more affordable meals.

It’s important to take this same approach when shopping around for a health savings account (HSA).

These accounts are used to pay for qualifying medical expenses. HSAs are beneficial because:

  • Contributions are tax-deductible.
  • Account assets grow tax-free.
    • NOTE: The 2021 Health Savings Account limits depend on whether the account is for self-only coverage or family health coverage. Learn more here
  • Withdrawn funds are not taxed, so long as they are used for a qualifying medical expense. This may include:
    • Prescriptions
    • Doctor’s visits
    • Dental treatments
    • Surgical procedures
  • Qualified medical expenses may be for you, your spouse, or dependents claimed on your tax return.

These benefits are at the foundation of what makes an HSA an HSA, but there are options with additional perks. Don’t settle for an “OK” HSA – doing your research to secure an industry-leading option will pay off in the long run!

What to Look for in a HSA

1. No Monthly Maintenance Fee

Some HSAs have fees associated with the account. This can include a monthly maintenance fee, which a financial institution may charge for a variety of reasons, such as the cost of managing your account.

Don’t let an HSA provider nickel and dime you as you try to save for health care expenses – there are account options available without the commonly associated fees.

Tip: Enjoy an HSA with no monthly maintenance fee and free HSA checks when you open one with General Electric Credit Union (GECU)

2. Simple Access

Make sure your HSA provider has digital solutions like a mobile app or online banking so you can access your account whenever and wherever you want.

Go with a financial institution with an online banking Bill Pay integration so you can quickly and securely take care of medical bills. This eliminates the need to memorize multiple usernames and passwords!

3. No Minimum Balance Requirement

Life comes with the unexpected. If you must use a large portion of your HSA funds, you shouldn’t have to worry about getting dinged with a minimum balance fee.

Some financial institutions are understanding of this and extend features like no minimum balance on HSAs as a result.

4. Federally Insured

HSAs through a credit union are federally insured by the National Credit Union Association (NCUA) up to $250,000, giving you peace of mind knowing your hard-earned money is protected and available for qualifying medical costs.

When you or your family needs to cover a healthcare cost, it’s nice to know you have a fund of tax-free money to tap into.

Reach out to a GECU team member to discover how you’ll benefit from our HSAs.

Interested in discussing an HSA in person? Visit us at a branch location and schedule your appointment online in advance!

 

 

Open an HSA today!

 

 

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GECU is not responsible for ensuring your expenses are qualified as defined by the IRS. A list of all expenses are available in IRS Publication 502, “Medical and Dental Expenses” found on the IRS website. For more information, visit the IRS website at: www.irs.gov or contact a qualified tax professional.

 

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