HEALTH SAVINGS ACCOUNTS

Health Savings Accounts (HSAs) are designed to give consumers more control over their health coverage, enabling them to choose their own doctors and shop around for the best deal on other services and procedures while receiving tax breaks at the same time.

The accounts must be connected to a high–deductible insurance policy—high deductible considered to be at least $1,100 annually for an individual and $2,200 or more annually for a family.

Once you open an HSA, you may contribute up to $2,900 per individual and $5,800 per family per year (for tax year 2008). Those who turn 55 by the end of the tax year can increase their annual HSA contributions $900 in 2008, with that amount rising to $1,000 by 2009 and thereafter. Contributions must stop after the policyholder retires, however, and current retirees are not eligible to open an HSA.

Benefits of a PEFCU Health Savings Account:

• No minimum balance required, $25 to open account
• Free Visa® check card to access your funds immediately
• Competitive dividend rate ($1,000 minimum daily balance to earn Annual Percentage Yield)
• Free online account access

How do I access my money in an HSA for medical expenses?

PEFCU makes it easy for you to pay for your medical expenses from your HSA. Since the account is a checking account you receive all the great benefits of PEFCU's Sensible^TM Checking. Free Visa check card, free online services, free face-to-face teller transactions and more. Simple use your Visa check card to pay at the doctor's office, dentist, or at the pharmacy. Be sure to keep your receipts for year-end tax reporting.

*For disclosures, please see Guide to Member Services and Further Information.