Health Savings Accounts previously called Medical Savings Accounts may save you money and taxes. If you are self employed or paying your own health insurance and retirement cost you may be better served with a Health Savings Account tied to a qualified health insurance plan. The Carrier pays 100% of all covered expenses after meeting your selected calendar year COMBINED FAMILY YEAR deductible (NOT PER PERSON), NO COINSURANCE after the deductible. (Some plans have 80/20 coinsurance) You pay your office visits, prescriptions and other medical treatment from your HSA fund account. The entire amount that you fund is 100% TAX DEDUCTIBLE, this may lower your income tax liability each year. Any claims paid from the HSA account is money that you will NEVER PAY INCOME TAXES ON!!

The insurance company pays tax DEFERRED interest on your account balance. If you take money out of the account for a non eligible expense not listed in the IRS 213D there is a penalty of 10% in addition to the taxes on the earnings. Money withdrawn after age 65 has no IRS penalty, only the income tax due. You may have the opportunity to invest the deposits in MUTUAL FUNDS etc. if you so elect.

Who Qualifies For HSA Tax Deductions? Anyone that pays income TAXES. Effective January 2, 2004 you no longer have to be self employed to have a Tax Deductible Health Savings Account. When you understand all of the significant tax savings the Health Savings Account affords you as an insured taxpayer you will only consider the HSA plan for your health insurance plan.

The HSA provides you the opportunity to keep part of the money you spend each month on health insurance and lower monthly premiums. Why send an insurance company a large premium each month and not have the opportunity to get part of your money back if you are not ill? Why not get the quality tax advantages?

With the new deductibles available you can actually have less out of pocket as a family with a Health Savings Plan than you would with a most health plans available. Effective January 2, 2004 you can fund your Health Savings Plan at 100% of the annual family max out of pocket. Individuals will also be able to fund at 100%.

Remember: All deposit money is 100% Tax Deductible. All qualified medical cost paid through the HSA is money you will never pay income taxes on. Some people say the money they spend out of the account is earning them their tax bracket. What is your tax bracket?

A family may contribute up to $5,800 during 2008. Individuals may contribute up to $2,900 during 2008. Some elect higher deductibles to mitigate the premiums but you cannot exceed the contribution limits even with a higher deductible.

AGE 55: Individuals age 55 or older may deposit an additional $900 for year 2008. A family plan age 55 plus may contribute an extra or $5,800 for 2008. We are not providing tax advice. Please seek advise from an Attorney, a CPA or the IRS concerning TAXES