08 May HSA’S- Here’s Why They Work!
There are generally tax strategies that can work for you and your business, if you understand the tax code.
The Health Savings Account is a powerful part of a health care strategy because:
- saves you $$$ through lower taxes
- grows tax-free
- gives you a chance to take control of your health care
Saves $$$–in order to have an HSA you have a high deductible health care plan–lower premiums
Tax-free accumulation like and IRA account.
Take control because you can pay cash out of YOUR HSA–no insurance company between you and your health care provider–imagine that!!
Tax Deduction-In 2017, the tax deduction from gross income is $3,400 for singles and $6,750 for families.
Deadlines–Must enroll by 12/1/17- and make the contribution by April 15th of the following year.
Tax-Free Withdrawals-You can spend the money on qualified medical expenses, including dental, eye-care, and chiropractic needs; the list is quite exhaustive. Also, there is no waiting period.
Self-Direct Investment- HSA funds must be placed with a custodian that allows for such activity. After 59 1/2 there is an option to withdraw for non-medical expenses, and then pay income taxes on it–much like an IRA account.
Easy Set Up-Easiest to do at your local bank–no major paperwork either. Most bank HSA’s will then provide a VISA card to pay for the medical expenses.
Remember, this is separate from your insurance plan–get the right type of health insurance that qualifies you, and do not call your insurance company to set up your HSA.