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Manage Your Healthcare Costs with a Health Savings Account

February 14, 2020

Here’s what to know about HSAs.

If you have a qualifying high-deductible health plan (HDHP), you might find yourself worrying about how to best manage your medical expenses. Health savings accounts (HSAs) offer a safe and easy way to set aside money for medical expenses.

What is an HSA?

An HSA is a tax-favored savings account for individuals and families covered by a qualifying HDHP. Contributions to an HSA are tax deductible, and distributions are tax free if used for qualified medical expenses. HSAs also allow your employer to make pre-tax contributions on your behalf.

Can anyone open an HSA?

You must meet some eligibility requirements to participate in an HSA, and you need to maintain an RCU membership.

What are the benefits of an HSA?

An HSA can save you money. Not only will you receive tax benefits for qualified distributions from your account, but you will also receive tax benefits similar to those of IRA-type accounts.

  • Deposits are tax free.
  • Earnings grow tax free.
  • You can access your account with your RCU HSA debit card or by writing a check.
  • Funds carry over year after year.

How much can I contribute to an HSA?

For 2020, the contribution limit is $3,550 for single coverage or $7,100 for family coverage. If you’re over age 55, you can make a $1,000 “catch-up” contribution as well.

If you’d like to learn more about HSAs or open an account, contact us today!

PPP Forgiveness Application Deadline

Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:

  • PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
  • RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
  • Your correct deadline will be reflected in your online banking account.

If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.

 

 

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