Health Savings Accounts Approved ForCalifornia CUs

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SACRAMENTO, Calif. - (07/15/05) -- The state Senate approved a billMonday that will allow the state's 210 state chartered creditunions to offer their members tax-deductible Health SavingsAccounts, sending the measure on to Gov. Schwarzenegger, who isexpected to sign it into law. Federal credit unions are alreadyoffering HSAs, which allow individuals to set aside tax-deductiblefunds to pay for medical expenses. Amounts used for approvedmedical expenses are not taxable. The California bill is scheduledto take effect January 1, 2005.

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