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December 18, 2010
Health Savings Accounts Can Help Small Companies
With the outrageous cost of health care in the U.S., every business owner is trying to cut costs. This is especially true for small business owners. Health Savings Accounts can provide a viable option to make health care more affordable.
A Health Savings Account (HSA) is a tax-exempt savings account, which can be used to pay for qualified health care expenses. These accounts can only be used with certain high-deductible health insurance policies.
Covered individuals and families may reduce their federal, and often their state, tax bills with tax-deductible HSA contributions. Unlike IRAs, there are no limitations for high-income earners.
Health Savings Accounts are owned by the employee, so the funds remain with the employee when they leave a company for any reason. These accounts grow with tax-free interest and there are no penalties for withdrawals when used for qualified health care expenses.
The benefits for small business owners can be substantial because premiums are typically less for high-deductible coverage, and employees absorb management duties to reduce company paperwork. The tax savings that are associated with Health Savings Accounts may be the biggest benefit for small business owners. Find out more about the advantages of health savings accounts at http://www.health--savings--accounts.com/
Posted by Wiley Long at December 18, 2010 10:24 AM