|
|
DESCRIPTION: An HSA is a tax-favored savings account designed to allow for the accumulation of funds to
pay for qualified healthcare expenses and to pay for future expenses. Unused funds may be used for a nest egg. The HSA works
with a qualified high deductible health insurance plan (HDHP). Together they provide premium savings, tax advantages and consumer
choice in healthcare decisions. ELIGIBILITY: Individuals or families, not eligible
for Medicare benefits, may have an HSA if used in conjunction with a high deductible health plan. It is available whether
you purchase the plan as an individual or a member of an employer group offering HSAs and you have no other medical plan concurrently.
TAXATION: The HSA funds are deposited Tax Free! Funds earn interest or investment return Tax
Free! Withdrawals for qualified expenses are Tax Free! Funds withdrawn after age 65 incur only ordinary income tax unless
used for non-Medicare covered medical expenses and prescriptions. Funds withdrawn before age 65 incur income tax and a 10%
penalty. ELIGIBLE EXPENSES: Qualified withdrawals include medical expenses defined
under Section 213(D) of the IRS code, including, medically necessary services, deductibles, co-pays, coinsurance, glasses,
dental and prescriptions. In addition, qualified Long Term Care premiums, COBRA continuation premiums, premiums while unemployed
and Medicare Part A&B premiums (not supplemental premiums) are eligible. FUNDING
MEDIA: Funds may be deposited with qualified companies, such as, your insurance company, brokerage firm or other third party
administrators. Withdrawals may be made automatically from the insurance company, savings account or brokerage account via
check, debit card or direct pay from the account to the provider. DESIGN
LIMITS DEDUCTIBLES 2009: Qualified HDHP plan minimums: Single:
$1150 Family: $2300 No first dollar benefits except for wellness and preventive care.
MAX OUT-OF-POCKET 2009: With coinsurance: Single: $5800 Family: $11600
TAX-DEDUCTIBLE CONTRIBUTIONS FOR 2009: The maximum amount that may be contributed and deducted
is the lesser of the amount of the deductible or the amount allowed by law, i.e., Single $3000 Family $5950, indexed
annually for inflation. For individuals 55 and older, additional "catch-up" contributions
are allowed up to $1000 per individual in 2009 and subsequent years. Contributions may be made by the individual, his or her
employer or shared by both. RESULTS: Lower health insurance premiums, tax-advantaged
savings and consumer choice in health care! You may order a proposal or request
further information from this website. We have access to most all the MN/WI insurance companies who offer a qualified
HSA product. Notice: This is only a short Primer on HSAs. Be sure to contact
your Legal and Tax advisor for specific rules, laws or to verify your eligibility. OPEN
YOUR HSA ACCOUNT HERE! If you already have your High-Deductible Health Plan in place and need
to set up the HSA portion, you may click here and enroll online with HSA Bank, an independant
administrator of HSAs:
|
