Westmark Credit Union
We are a full-service financial institution, owned by our members & committed to the development of their financial future. We have 12 convenient locations.

Answering Your Questions About Medical Savings Accounts

There’s no question that healthcare costs are on an upward trend, and the older you become, the more healthcare costs you’re likely to have. If you don’t yet have a medical savings account, consider visiting your credit union branch to open one today. The member representative can answer all of your questions about this financial tool.

Why should I open a medical savings account?

This type of account offers tax benefits. By directing funds to this account, you can shelter some of your gross income from state income taxes.

What if my medical expenses aren’t substantial?

Maintaining a healthy lifestyle can help you keep your healthcare costs low in the future. However, it isn’t always possible to prevent all major medical problems. There’s no way to know exactly how much money you’ll need for your future healthcare. With a medical savings account, you can get tax savings and set aside some of your income for your future medical costs. People often find that having medical savings accounts gives them peace of mind when facing an uncertain future.

Can I open a joint account?

Yes. If you’re married and you open a joint account, the amount you can claim as a deduction will double. Individuals can deduct $10,000 of medical savings account contributions each year, and married couples can deduct $20,000.

Are the deductions applicable to federal income tax?

No. A medical savings account will only reduce your state income taxes.

How do these accounts affect estate planning?

When you open your medical savings account, you can designate a beneficiary. Your beneficiary can withdraw the funds after your death, without incurring a financial penalty. However, he or she must include the funds as reportable income for tax purposes. Your credit union representative may encourage you to speak with your tax advisor for more information about the tax implications of opening this account.

As a member of Westmark Credit Union, you can open up a medical savings account at one of our branches. We’re proud to continue our tradition of providing excellent financial services to Idaho residents. Get in touch with a friendly representative at (208) 523-1071.

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2520 Channing Way
Idaho Falls, ID 83404

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