eFLHealthinsurance Shows Health Savings Accounts Create Tax Savings for All Income Levels

Feb. 29, 2012 - PRLog -- There is no requirement to fund a Health Savings Account (HSA) at all, but eFLHealthinsurance has published 2009 examples of the tax savings generated by contributing the full federally-prescribed limit. For 2011, IRS Publication 969 caps individual contributions at $3,050 and family contributions at $6,150. Those who are at least age 55 may deposit an additional $1,000 for the year. Contributions may be deposited until April 17, 2012 to lower 2011 tax bills.

eFLHealthinsurance president, Wiley Long, says, “You get a federal income tax deduction for HSA contributions even if you take the standard deduction and don’t itemize. This is available to everyone, with no restrictions on the amount or source of income.  A one-time roll-over is also allowed from an FSA (Flexible Spending Account), HRA (Health Reimbursement Arrangement) or IRA (Individual Retirement Account).”  

Not including savings on Florida state income taxes, an individual with $20,000 in annual income would have saved $397 tax dollars in 2009 by fully funding an HSA.  If she filed as head of household with one dependent, the savings would have increased to $525.  Married couples in the same income bracket would have saved $360 regardless of whether they had dependents.

Federal tax savings increased among higher income brackets.  For example, an individual with an income of $120,000 would have saved $742, and someone filing as head of household with one dependent child would have saved $1,313.

Since the IRS allows higher HSA contributions for 2011, the savings available are now larger, but tax deductions are not the full extent of the savings available.  Distributions to pay for qualified health care for the HSA owner and family members as well as the earnings on the HSA deposits are all tax-exempt.

Long adds, “The HSA has become the fastest growing type of health plan. Bank of America just announced that 34-percent growth in these accounts set a record last year.  More than 50,000 such accounts were set up in 2011, and more than $300 million is now collectively held by HSA owners.”  Since they have until April 17th to reap the maximum deduction to lower their taxes, Long advices everyone to make this a priority.

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About eFLHealthinsurance:

eFLHealthinsurance has become a leader in providing educational resources that enable Florida families, individuals and small businesses to keep their health care costs low. Online information explaining how to find coverage to fit individual needs is available at http://www.eFLHealthinsurance.com/how-to-guide.htm and http://www.eFLHealthinsurance.com/health-savings-accounts....

Florida residents seeking health insurance options in the individual market may use eFLHealthinsurance’s online resources or schedule consultations with professionals to compare coverage options to personal health care needs by calling 1-866-585-7661 between 9 AM and 11 PM Eastern.

eFLHealthinsurance also provides extensive resources that can lower health care costs that are not covered by insurance at http://www.eFLHealthinsurance.com/additional-benefits.htm.