Health Savings Accounts
With Health Savings Accounts (HSA) plans, subscribers save for medical expenses with pre-tax dollars, giving them an IRA-style tax deduction on items they would otherwise have to purchase with post-tax dollars. Click here for a list of HSA-qualified Expenses that offer this significant tax advantage*.
The funds invested in an HSA account can also be used to pay insurance deductibles and other out-of-pocket expenses in conjunction with a HSA-compatible health plan. These types of health plans have lower rates than traditional plans and can save a significant amount in premiums over the course of a year. In most cases, the savings on the HSA-type plan will more than pay for the maximum funding of an HSA.
Joseph Totah will be happy to provide you with an analysis of the cost savings you could realize with a HSA plan.
For 2010, the maximum pre-tax amount that can be contributed into a HSA is $3,050 for individuals and $6,150 for families. Contributions can be deposited as a lump sum or in any increments you choose over the course of the year. If you don't use all of the funds in the account during the course of the year, they roll over to the next year and will always stay with you for use on HSA-qualified Expenses. You can keep adding to the account in the allowable amounts in future years, but you are not required to.
We can set you up with HSA compatible Health Plans, but the HSA funding is done directly through a bank and have listed some helpful resources below.
HSA resources is listed below
- US Treasury Information on HSAs
- HSA contribution worksheet
- HSA facts
- Article in Smart Money Magazine
HSA banking information is listed below
*This only applies to Federal Income Taxes, please consult your CPA or Tax professional