HSA for October 19, 2017

Understanding Your Health Savings Account Plan

1. Choose a low-cost but high deductible plan.
Enroll for a high deductible HSA or health saving account insurance plan that works in combination with health saving accounts. Due to higher deductible, your premiums per month will become lower.

2. Enroll and open a HSA savings account.
As soon as your HSA plan is establish, you can now open your real savings account in any qualified financial institutions. HSA and IRA are the same. In HSA, deposits are tax-deductibles and the withdrawals are done in tax-free basis for paying medical expenses. Yearly limits are forced in the amount being contributed.

3. Supplemental retirement funds.
Overall, you must be capable in funding the account with extra dollars or else you will be paying a higher cost health plan. Plus, a family can save up to $1,600 every year in taxes by subsidizing their health savings account. Unused funds every year by year are being added and then accumulated in retirement base in tax-favor.

HSA Benefits at a Glance:
• Remarkable tax-savings – regardless of whether you itemize.
Filing your taxes yearly, your money that is deposited in your health account becomes tax-deductible on line 25 in front page of your form. This will give you deduction in your tax bill by a $2,000 for families that is based on 33% tax bracket. In tax savings, with HSA plan, we can say that you are using your money in paying your medical bills that otherwise can be used in paying your taxes.

• Double-discounts.
If you visit your physician, you can use your tax-free money from your health savings account in paying them, money that otherwise can be used in paying taxes or premiums. The accounts in HSA can be easily available by check or debit card. Your bill can be reduced in advance of payment if your provider is a member of PPO discount network.

• Rx savings.
When you buy prescriptions and medications, simply go to a PPO discount pharmacy and pay the amount that is discounted on the spot by check or debit card directly in your health savings account. For more savings, you can use the priced Rx mail service. Other plans are excluding Rx drugs from the coverage of premium savings.

• Tax-free money for dental, eye wear, etc.
Other medical expenses that are not covered by HAS insurance policy can still be considered as an allowable expenses in the health savings account. Examples, dental work that includes braces, vision care with glasses, and eye surgery and alternatives therapies like acupuncture can be all paid with tax-free cash from HSA.

• The Super-IRA effect.
Money that you don’t use each year on your health savings account is being add up to your account. It continuously grows and grows based on tax-sheltered. When you reach the age of 65, you can use your account just like a traditional IRA.

Tip: Continue funding your HAS account every year up to the maximum amount allowed every year. In paying routine medical bills you can use after tax dollars. This helps you reduce your taxes yearly and will allow you to make your account larger, which gives you a greater help in unexpected tragedy in the future and larger amount for your retirement. (Note: Using HSA account in paying your medical bills with tax-free dollars is not the same as paying them using your own money from your pockets-your HSA covers only for small bills and the unused amounts are you’re to keep. This is a stark contrast in paying an insurance firm a little thousand dollars yearly to do effectively the equal thing–insure the “small” bills).