Did you know?

Did You Know? A Health Savings Account (HSA) can help you save for healthcare today and tomorrow.

Healthcare expenses can add up quickly, from routine doctor visits and prescriptions to dental care, vision needs, and unexpected medical costs. That is where a Health Savings Account, or HSA, can be a helpful tool.

An HSA is more than just a savings account for medical expenses. It is a tax-advantaged account designed to work alongside a qualifying high-deductible health plan, giving you a way to set aside money for eligible healthcare costs while keeping more control over how and when those dollars are used.

HSA funds can roll over year after year
Unlike some healthcare spending accounts, an HSA does not have a “use it or lose it” rule. If you do not spend all the money in your account during the year, those funds stay in your HSA and carry forward.
That means your HSA can help with healthcare expenses now, while also giving you the opportunity to build savings for future medical needs.

You own your HSA
Your HSA belongs to you. If you change jobs, switch employers, change health plans, or retire, the money in your HSA remains yours.
That ownership is one of the reasons an HSA can be such a useful part of a long-term financial wellness plan. It gives you flexibility and control over healthcare dollars that you may need later.

HSAs offer tax advantages
HSAs may offer several tax benefits. Contributions you make may be tax-deductible, and funds in the account can grow tax-deferred. When HSA funds are used for qualified medical expenses, withdrawals are generally tax-free.
If your contributions are made through payroll deduction, they may also reduce your federal taxable income and may lower Social Security and Medicare taxes.
Because tax rules can vary based on your individual situation, it is always a good idea to consult a qualified tax advisor.

HSA funds can be used for many qualified medical expenses, including:

• Doctor visits
• Prescription medications
• Dental care
• Vision exams, glasses, and contacts
• Chiropractic services
• Physical therapy
• Medical equipment and supplies

Withdrawals used for qualified medical expenses are generally tax-free. Funds used for non-qualified expenses may be subject to income tax and possible penalties.

Who may be eligible for an HSA?
You may be eligible to open and contribute to an HSA if you are enrolled in an HSA-qualified high-deductible health plan. In addition, you generally cannot be covered by another non-HDHP health plan, enrolled in Medicare, or claimed as a dependent on someone else’s tax return.
Eligibility is determined monthly. If you are unsure whether your health plan qualifies, your insurance provider or employer can help confirm.

How much can you contribute?
Contribution limits are set by the IRS and may change from year to year. For 2026, eligible individuals may contribute up to $4,400 for individual coverage or $8,750 for family coverage. Individuals aged 55 or older may be able to make an additional catch-up contribution of up to $1,000.
Because contribution limits and eligibility rules can change, be sure to review current IRS guidelines or speak with a qualified tax advisor.

2026 HSA Contribution Limits

Is an HSA right for you?
An HSA may be a good fit if you want to lower your taxable income, prepare for future healthcare expenses, and have more control over how your healthcare dollars are spent.
Whether you are planning for routine care, unexpected medical costs, or future healthcare needs, an HSA can be a smart addition to your financial wellness plan.
New Dimensions Federal Credit Union is here to help you understand your options. Ready to get started? Call (800) 326-6190 or stop in and speak to someone in person.