Getting Started

A Reading Co-operative Bank Health Savings Account (HSA)
is a great tool for both your physical and your fiscal health.

As the name implies, an HSA is a convenient way to save for current or future medical expenses. Developed for members of High-Deductible Health Plans, the HSA gives you greater control over your healthcare as opposed to the typical “gatekeeper” system that determines what benefits are allowed.

Reading Co-operative Bank is prepared to guide you through the mechanics and the benefits of our Health Savings Accounts and point out the pros and cons, depending on your particular situation. As you’ll see, our HSA is intended to lower your overall healthcare costs while providing you with some substantial tax benefits. You can use funds to pay for qualified medical expenses at any time without federal tax liability. And withdrawals for non-medical expenses are treated very similarly to those in an IRA account. They may provide tax advantages if taken after retirement age (but there may be penalties if not).

Here are some of the benefits you’ll enjoy with a Reading Co-operative Bank Health Savings Account:

Expanded Availability: Available to all eligible individuals, not just – as with some other types of accounts – the employees of small businesses and the self-employed.

Contribution Options: Both you and your employer may make contributions to your account.

Tax-Free Benefits: Funds contributed to your account are not subject to federal income tax at the time of deposit.. The accumulated earnings are tax-free, too.

Flexibility in Spending: Your “qualified medical expenses” may include everything from health-insurance deductibles and co-payments to certain over-the-counter medications and out-of-pocket expenses.

Year-to-Year Savings: Your balances roll over to the following year and continue to grow.

Individual Ownership: This is your account, not your employer’s, so you get to maintain it.

Eligibility

You qualify for an HSA if:

- You are an adult under the age of 65 and are not claimed as a dependent on someone else’s tax return;
- You have a High-Deductible Health Plan (HDHP) on the first day of the month.

Coverages that are permitted:

- Specific Injury Insurance
- Accident Insurance
- Disability Insurance
- Dental Care
- Vision Care
- Long-term Care Insurance.