[ FINANCIAL ]
HEALTH SAVINGS ACCOUNTHealth care expenses can have a big impact on your budget. Pay for current expenses and save more for future ones with a Health Savings Account (HSA). Note that the HSA is only available through BCU if you enroll in the High-Deductible Health Plan (HDHP) and do not also have other non-high deductible health plan coverage, such as Medicare or through a spouse or partner’s coverage.
Plus, you receive a $500 company contribution for employee-only coverage or $1,000 for family coverage. You also can contribute with pre-tax dollars to help cover current or future eligible health care expenses.
HSAs offer a triple-tax advantage:
- Your and BCU contributions are deposited tax-free.
- Interest earned on your account grows tax-free.
- Withdrawals for eligible health care expenses are tax-free.
Your account can keep growing, even into retirement.
WHAT IS AN HSA?
An HSA is a savings account that works in conjunction with your medical plan. You can use it to save and pay for qualified medical expenses like doctor visits, prescriptions, dental and vision costs.
All the money in your HSA is yours to keep. Unlike the use-it-or-lose-it IRS rules for health care FSAs, your HSA balance rolls over year after year—and goes with you if you leave BCU. There is no time limit on spending HSA funds. You can even save and invest them to help cover health care costs in retirement.
KEY FEATURES
- It’s all yours. Your funds are held in an account at Inspira, our spending account administrator.
- There’s no “use it or lose it.” Unused funds roll over year over year, with no cap.
- It’s portable. Because the HSA is yours, you can take it with you if you retire or leave the company.
- You control it. You decide how to spend your money on qualified medical, prescription, dental and vision expenses.
- You save on taxes. You don’t pay federal taxes on contributions, withdrawals or investment earnings.
- You can invest. You can choose to move account values over $1,000 into an investment portfolio, allocating it among a variety of investment fund choices.
HOW MUCH CAN YOU CONTRIBUTE?
You can contribute as much as you want up to IRS limits. For 2025, the annual contribution limit is $4,300 for employee-only coverage and $8,550 for all other coverage levels. This total includes the company’s contribution of $500 for employee-only coverage or $1,000 for family coverage.
Note: If you’re age 55 or over, you can make an additional annual catch-up contribution of $1,000.
HOW TO PAY FOR COVERED EXPENSES
If you are new HSA participant, you will receive welcome materials from Inspira after you enroll, including a debit card and further information. If you re-enroll, your current debit card will remain active until the expiration date noted on the card (if applicable). Be sure to keep your receipts! Inspira may request you provide receipts and/or Explanation of Benefits (EOBs).