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October 18, 2011
Health Savings Account Plans Offer Triple Benefits Over Old-fashioned Health Insurance
Health Savings Account (HSA) Plans are not just health insurance. They are low-cost, high-deductible insurance plans, potential tax deductions, and savings accounts with investment opportunities similar to IRAs and Roth accounts. That's how they offer three times more than old-fashioned policies.
Since they came to market in 2004, HSA Plans have attracted a loyal following. That's because their insurance premiums tend to be on the low-end and HSA Plans offer significant tax advantages.
There are no HSA contribution requirements other than upper limits. Funds deposited in an HSA can be taken as tax deductions even without itemizing deductions. They're considered "above the line deductions" for federal and almost all state tax filings. Our site shows how individual states treat HSA contributions.
Contributions to your Health Savings Account can on kept liquid to facilitate withdrawals as with an interest-bearing savings account, or invested in bonds, mutual funds or stocks. That makes them competitive with IRAs and Roth accounts.
HSA earnings are not taxed while in the account. Neither are withdrawals used pay for qualified health care expenses taxes. At age 65, HSA owners may spend the funds for any purpose, but HSA funds spent on anything other than eligible health care are then subject to taxation. More information about how these HSA plans work is available on our website: http://www.health--savings--accounts.com
Posted by Wiley Long at October 18, 2011 10:03 AM