Business Health Savings
With the uncertainty of health care plans, employers may still provide health care options for their employees. One such option for employers to consider is funding or pre-funding a Health Savings Account (HSA) for their employees. With any HSA, employers and employees may want to discuss any tax consequences of funding or pre-funding an HSA.
Health Savings Accounts (HSAs) are U.S. government sponsored individual investment accounts designed to help save for future qualified medical and retiree health expenses on a tax-free basis. They are available only to people who are covered by a high deductible health plan. A high deductible health plan (HDHP) is a health insurance policy that requires the enrollee to pay for most medical expenses up to a certain dollar amount before the insurance policy begins to cover them. This account complies with all applicable Federal guidelines and regulations and is available exclusively to members of DuTrac Community Credit Union.
To be eligible for an HSA, an employee must:
- Be covered by a high-deductible health plan
- Not be covered by any other health plan that is not a high-deductible plan (Certain exceptions may apply.)
- Not be enrolled in Medicare
- Not be claimed as a dependent on another person’s tax return.
An HSA account allows you to contribute tax-deductible funds to be used for qualified medical expenses, such as:
- Medical care and services
- Dental and vision care
- Prescriptions
- Over-the-counter medications
- Chiropractic visits
- Acupuncture.
The earnings on the account may also be tax free. Not everyone is qualified to have an HSA. We recommend guidance from your tax advisor and or legal professional to determine your eligibility to establish an HSA. DuTrac, your account custodian, is not responsible to determine allowable contributions or whether you have qualified expenses for reimbursement.
DuTrac’s HSA accounts are set up as High Yield Checking accounts paying interest based on the 13-week Treasury Bill average. Employees can access their HSA account by check, debit card or through the use of DuTrac’s online BillPayer product.
For further information about establishing a DuTrac Health Savings Account please contact our highly qualified financial services consultants by e-mail at members@dutrac.org, by phone at (563) 582.1331, or (800) 475.1331, or stop into any of DuTrac’s convenient locations.
