Health Saving Accounts (HSA’s)

You might have heard about HSA’s but have no idea what it is and how it can work for you and your family. Let Mr. Insurance of Maryland explain:

A Health Savings Account (HSA) is a tax-favored savings account designed to allow for the accumulation of funds to pay for qualified healthcare expenses and to save for future expenses. I like to call it “a 401K for health care”.

The HSA works with a high deductible health insurance plan. Together they provide:

• Lower Premiums
• Tax Advantages
• Investment Opportunity

How Do You Get Started With an HSA?

The first step is to purchase a low premium high deductible major medical health plan. Remember, the purpose of a health insurance plan is to limit your financial exposure should you have any major health issues to deal with.

The next step is to open an HSA account at your bank and deposit savings in tax deductible account. These funds will cover deductible, co-insurance and out of pocket expenses. The list of acceptable expenses is extensive and even includes over the counter medications and more…you will be amazed at what you can buy tax free!

HSA Tax Benefits:

• Contributions are tax deductible going in and coming out.

• Interest income is tax-free

• Qualified withdrawals are tax-free

• Accrue savings from year to year and build a tax-sheltered next egg for future long-term healthcare.

“That makes HSA tax benefits SUPERIOR even to IRAs. With IRAs, the money is taxed either before it goes into the account or as it is taken out” (from USA Today)

If you are not participating in a HSA Plan, you’re might be paying too much for your health insurance! Uncle Sam says it’s OK… don’t lose an opportunity to save on your income taxes while simply providing for your own good health!

Call me to find out more about these great plans! Steve Klein….301-980-2915