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June 29, 2005
A New Kind of Health Savings Account
The Florida legislature has approved a measure that would allow citizens to set up tax-free Hurricane Savings Accounts. They work like a Health Savings Account (HSA), but instead of allowing you to spend the money tax-free to pay for medical expenses, you can pay for hurricane and related expenses.
As your account grows, you can comfortably buy higher deductible (less expensive) insurance. Any money not used to pay for hurricane-related expenses is still yours, just like with an IRA or 401k.
For too long, the government penalilzed savers and investors by taxing their income before they even save any of it, and then taxing any return they earn on it. I'm glad to see the tax-code rewarding those who save for the future. An ownership society with less dependence on government handouts or Social Security is a betteer society, without question. The Florida legislature is now pushing for the federal government to give tax deductions on this program, and I wish them luck.
Find more Health Savings Account inforamation at HSA for America
Posted by Wiley Long at June 29, 2005 10:34 AM