Looking for a great, tax-advantaged way to save for copays, prescriptions, long-term care, and other qualified medical expenses? A Health Savings Account (HSA) can help you put away money for current and future medical needs. For a complete list of qualifying medical expenses, go to www.irs.gov.
Your account comes with access to a Vermont Federal HSA Debit Card and/or checks. You can use either to pay qualified expenses like copays and prescriptions.
Contributions (deposits) may be tax deductible.
Distributions (withdrawals) for qualified medical expenses are tax free.
Your HSA is portable. So it stays with you even if you leave the work force or change jobs, employers, or your medical coverage.
Your HSA funds roll over from year to year. So you don’t have to spend the money in your account every year like you do with a flexible savings account.
You are eligible to open a Vermont Federal Health Savings Account if you are:
When you open a Vermont Federal Health Savings Account, your annual contributions are subject to IRS limits.
Here are the maximum contribution limits for 2024:
The IRS also allows people age 55 and over to make an additional “catch-up” contribution:
