How can a Health Savings Account
save me premiums and Taxes too?
Health Savings Accounts (HSA’s) allow you to save money, premium & Federal taxes by getting a qualified Bronze high-deductible health Insurance plan (HDHP), as higher deductible plans have lower premiums.
One then pays their allowable medical expenses (IRS Publication 502, Internal Revenue Code (IRC) §213 [d])) Aetna through your HSA bank account – debit card. The maximum contribution in 2018 is $3,450 single and $6,900 family Wells Fargo * IRS * SHRM * See table below. If you are over $55 and additional $1k. An HSA is very similar to an IRA, except that it is for medical expenses.
When you retire, the money in your account can still be used for medical and some Insurance Premiums, without paying taxes.
Without an HSA or having an EmployER sponsored plan, medical expenses are not usually deductible unless they are more that 10% PPACA 9013 of adjusted gross income IRS Publication 969 .PDFCalifornia tax*IRS publication 502
|Suze Orman – HSA||
One might also consider a supplemental accident plan to cover the deductible in a Bronze HSA Plan.
ACA Health Reform does not appear to have any effect on HSA’s other than the change from 7.5% to 10% that one would have to otherwise incur for premiums and expenses to be deductible and over the counter medications must have a prescription. PPACA 9013 healthcareexchange.comcigna.com hsawells fargo While there is a $2k deductible limit for individuals and $4k for families, to qualify as an essential benefit, since the HSA account provides reimbursement, 42 USC 18022 (2) there should be no problem. Check with your tax or legal adviser.
Trumps HSA’s are a scam Blog Insure Me Kevin.com 11.21.2016
Sales Brochures – Learn More
Ask for the Cash Discount and other ways to save with a high deductible plan CA Health Line 5.1.2017
United Health Care HSA brochures & information
LA Times 5.2013 on Pros – Cons of High Deductible Plans la times.com
Internal Revenue Bulletin: 2008-29 Health Savings Accounts – Guidance
|Contribution and Out-of-Pocket Limits
for Health Savings Accounts and High-Deductible Health Plans
|HSA contribution limit(employer + employee)||Self-only: $3,500
|HSA catch-up contributions (age 55 or older)||$1,000||$1,000||No change|
|HDHP minimum deductibles||Self-only: $1,350
|HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)||Self-only: $6,750
|*The IRS originally set at $6,900 then recalculated to $6,850, but subsequently provided relief to effectively restore the original limit.
Source: IRS, Revenue Procedure 2018-30.
- Broker ONLY – HSA
- FAQ’s – Calculators – HSA
- FSA Flexible Spending Accounts
- Historical HSA
- HSA Banks & Institutions
- IRS Tax Forms & Publications – HSA
- Section §105 Medical Expense Reimbursement