HSA for America Charts the Course to Low-cost Health Insurance and Tax Advantages

Sept. 27, 2011 - PRLog -- A Health Savings Account (HSA) allows consumers to deposit up to $3,050 for individuals or $6,150 for families, and take the full amount as a tax deduction.  Next year, the limits increase to $3,100 and $6,250.  Individuals age 55 or older may contribute an additional $1,000 yearly.  No other investment offers a tax deduction today and a tax-deductible withdrawal tomorrow. Consumers must have their HSA-qualified health insurance plan in place by December 1st to qualify for a 2011 tax break.  As the leading online expert on Health Savings Accounts, HSA for America has eight tips to help consumers get more from an HSA.

Tip #1 – In almost all states, high-deductible plans now cover annual physicals and other preventive health care with little or no out-of-pocket costs.  Once coverage is in place, check with the insurance company to see whether these services are available.

Tip #2 – There is no minimum HSA deposit requirement, but contributions made by April 15 are considered an "above the line" deduction for the previous year's income taxes.  Since that doesn’t require itemizing deductions, it’s easy to take the standard deduction.  States that follow federal HSA guidelines may be seen at http://www.health--savings--accounts.com/state-income-tax....

Tip #3 – An employer may also contribute to an employee’s account.  HSA contributions from employers are “excluded” from an employee’s income, and are not subject to FICA or income tax.  

Tip #4 – Health care expenses may be retroactively reimbursed as long as the HSA was open at the time the expense was incurred.  Money can be deposited after a medical bill is received and then immediately withdrawn for reimbursement.  

Tip #5 – Since HSA funds grow with tax-free earnings, contributions in excess of health care costs can become a retirement account, like an Individual Retirement Account (IRA), but with fewer restrictions.  HSA funds can continue to grow with tax-free earnings long after retirement, but the money is not completely out of reach until age 59-and-a-half as with IRAs.  HSA funds may be withdrawn at any time to cover qualified health care.

Tip #6 – A one-time roll-over from an IRA, Health Reimbursement Arrangement or Flexible Spending Account can be made into an HSA.  

Tip #7 – As the HSA balance grows, consumers can move to a health insurance plan with a higher deductible to get lower premiums with little risk because the deductible can be covered with HSA funds.

Tip #8 – Setting up a Health Reimbursement Arrangement will allow health care and health insurance costs to be covered through a business to further reduce taxes.

The number of HSA owners has grown consistently each year since HSA Plans were first offered in 2004.  Low-cost premiums, tax deductions and tax-free earnings are the primary attraction, but now there is increasing interest in HSA Plans as alternatives to traditional IRAs and Roth IRAs.  Health Savings Accounts allow for a range of investment options similar to IRAs, without locking up funds until the owner is at least 59-and-a-half.  HSA funds are not subject to the mandatory withdrawal requirements of IRAs and can continue growing on a tax-free basis well into retirement.  HSA for America offers online resources at http://www.health--savings--accounts.com to help consumers learn how to use these plans to maximize the benefits.

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About HSA for America:

As the nation's leading independent HSA expert, HSA for America has earned a reputation for providing superior educational resources for individuals, families and small businesses. With a comprehensive website at http://www.health--savings--accounts.com/, consumers can evaluate high-deductible health insurance plans that allow them to establish an HSA.

Guidelines for selecting an HSA administrator based on fees and investment options are readily available at http://www.health--savings--accounts.com/admins.htm. Topics to help consumers maximize their savings on premiums and taxes can be found at http://www.health--savings--accounts.com/how-to-guide.htm.

Consumers may access HSA for America’s instant quote engine and online applications or request individualized assistance. Confidential consultations regarding HSA Plans and Health Reimbursement Arrangements may be arranged by calling 1-866-749-2039 from 9 AM through 11 PM Eastern.