Line 25 HSA Deduction
Line 25 HSA Deduction
HSA's IRS Publication 969
HSA’s IRS Publication 969
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HSA Bank – Slide Show (might be slow loading)

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.  

The contribution to your HSA is tax deductible, lowers your MAGI – Modified Adjusted Gross Income  and shown on line 25 of 1040 with Form 8889 attached. 

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 2015 is $3,350 single and $6,650 family Wells Fargo  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 planmedical 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

One might also consider a supplemental accident plan to cover the deductible in a Bronze HSA Plan.

Donald Care proposals often tout HSA’s.  The Patient Freedom Act by U.S. Senators Bill Cassidy and Susan Collins talks about PRE Funding HSA’s.   AHCA Rev 3.6.2017 page 85 et seq

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

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Why an HSA might be right for you

 

Suze Orman – HSA

Sales Brochures –  Learn More

See Steve Save

Ask for the Cash Discount and other ways to save with a high deductible plan CA Health Line 5.1.2017

Top 10 hit list for HSA presentation

Health Savings Checkup

Cal Choice

HSA Fast Facts

The California Choice® HSA & Banking Partners

Consumer Resources

EmployER’s HSA Introduction

Los Angeles Times 5.6.2013 on High Deductible Plans and HSA’s

LA Times 5.2013 on Pros – Cons of High Deductible Plans  la times.com

Explanation of above and below the line deductions Motley Fool.com

Internal Revenue Bulletin: 2008-29  Health Savings Accounts – Guidance

Child Pages

April 2014 Update

3 comments on “Health Savings Accounts – HSA

  1. There must be a better HSA plan. 40%!?

    Can you suggest an HSA plan with better coverage?

    It looks like the 2016 plan has $1000 more deductible and 10% higher co pay? Seems like poor coverage to me.

    Even if the premiums are higher we need to consider a better plan with lower deductible etc.

    Boy Obama care – should be called Give Me More Money for less Coverage Care

    • Let’s take a look at the detailed HSA United Health Care HSA $4,500/60% brochure from our FREE Almost Instant Small Group Quote Engine.

      1st off, if you are buying an HSA Health Savings Account it’s because one doesn’t think they are going to have much in the way of claims and you want to save premium $$$ by having a high deductible. The premium savings goes into your HSA account Tax Free and rolls over to the next year and even into retirement if you don’t use it.

      As we see from the online brochure, this plan has a $4,500 deductible and a Maximum Out of Pocket of $6,500 in network for individuals. Thus, the co-insurance amount of 40% only applies to $2,000 worth of claims between $6,500 and $4,500.

      I will send you quotes for alternate HSA plans in a private email. Please note the differences in networks as show on page 4 & 5 of the United Health Care brochure.

      All rates are based on an 80% loss ratio rule, so basically any premium one sends to an Insurance Company under ObamaCare, you get back 80% and the Insurance Company keeps 20% for overhead and profit. Why pay them to keep your money on small claims?

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