Health Savings Accounts



If you are considering changing your health insurance policy, you should be aware of the alternative of a Health Savings Account (HCA).

Health Savings Accounts started to become available (and legal) in 2004, allowing people with high-deductible insurance policies to set aside tax-free money to fund medical expenses up to the maximum deductible amount.

If you don’t have to use the funds, it rolls over every year. Once you reach age 65, you no longer are required to use it for medical expenses, although you certainly can; you can withdraw funds under the same conditions as a regular IRA.

Although you will be penalized if you use the funds for non-medical expenses prior to age 65, you can use the money for vision care, alternative medicine or treatment and dental care.

For 2008, an individual may fund up to $2,900 tax free. The maximum deductible would be $1100 and the maximum out-of-pocket cost would be $5,600.

For a family, the maximum tax-free contribution is $5,800 with the maximum deductible of $2,200 and the maximum out-of-pocket cost would be $11,200.

Health Savings Accounts are certainly a viable way to shelter income while providing catastrophic insurance coverage in light of the high cost of low-deductible health insurance plans.

For healthy people, it deserves some research. Consult with your insurance agent for all of the details involving this approach to managing your insurance needs.



 

 
Translate Page Into German Translate Page Into French Translate Page Into Italian Translate Page Into Portuguese Translate Page Into Spanish Translate Page Into Japanese Translate Page Into Korean

More Articles

 


 

More Articles


Factors Of Mortgage Approval

... and doing what you can to improve them all can make a tremendous difference when you go and see your lender and start the process that will get you your new property. Some of the basic factors apply for just about any loan but are especially important if you are trying to get a mortgage. The big one is, ... 

Read Full Article  


False Assumptions In Staying Healthy

... process is irreversible and may cause the life of the person. Even if there was a reason that ageing is part of life and that even how much we try to choose the right food our bodies would still deteriorate anyway, the thought of why would we hasten the process of ageing by introducing unwanted radicals ... 

Read Full Article  


Winter Pregnancy Dresses

... substitute to a coat. Or perhaps you might like to add some layers to your clothing instead of wearing one coat. If you team up the clothes with eye of colors and textures you might actually be able to hide the flab as well. Think about a warm top, a color coordinated pull over with a woolen skirt and ... 

Read Full Article  


Getting A Wedding Photographer

... angle to take the pictures. Aside from that, photographers also have a wide array of equipment that will help them get the job done. Couples don t need to worry about dim shots or shots that are out of focus because wedding photographers will always come in prepared. And since they already visualized ... 

Read Full Article  


Credit Cards A Necessary Evil

... get one. There are even others designed for the subprime markets, for people with NINJA status (No income, no job no assets). It s hard to get a hotel booking (in some hotels, at least) if you are card-less. The many internet firms selling merchandise online will require you to pay using a credit card. ... 

Read Full Article