Wisconsin Gives Health Savings Accounts State Tax Deduction Status
Posted on May 29th, 2011
Health Savings Accounts are attractive because contributions to these accounts are tax deductible on federal income tax returns. The choice of making Health Savings Account (HSA) deposits deductible on state tax forms is left up to each state. Almost all states have chosen to follow the federal example on this and Wisconsin is the latest state to adopt that legislation beginning with the 2011 tax year.
Individual coverage health plans that can be combined with an HSA have a deductible of at least $1,200. Family HSA plans have deductibles starting at $2,400. These high-deductible plans usually cost much less than co-pay plans, which don’t require policyholders to meet a deductible.
Once Health Savings Accounts are funded, they can be used to cover the deductible.
Tags: Health Savings, Health Savings Accounts, Savings Accounts, Tax
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Get A Health Savings Account Before It’s Too Late
Posted on May 21st, 2011
Healthy as we may seem today, we never know when illness can strike. Would switching from a full-coverage plan to a high-deductible health plan with a health savings account (HSA) be a wise decision to make? What if you need to meet a high deductible? You may be surprised to find that when you add up how much you can save on premiums and by reducing your taxes, it could actually cost less even if you do have to pay for health care until a high deductible has been met.
If you have good health and do not need much medical care, a high-deductible insurance plan that has low premiums can be a “no brainer.” If you are in a high tax category, an HSA or Health Savings Account can definitely help lower your federal income tax and state income tax in almost all states.
Tags: Account, Health Savings, Health Savings Account, Savings Account
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Health Savings Accounts Make Their Case
Posted on May 14th, 2011
Proponents say that only Health Savings Accounts separate health care from insurance. For example, say you have family coverage through work that costs the employer $12,000 annually. If your employer pays for all the premiums and you have $25 co-pays to see a doctor, your expense is limited.
In contrast, if your employer still spends $12,000 a year, but puts $5,000 of it into a Health Savings Account (HSA) in your name, $5,000 of your health care benefit is now legally yours. Instead of a co-pay plan, your employer must buy a High-deductible Health Plan that’s qualified to work with an HSA.
Preventive care is 100-percent covered, but you’ll have to pay for other services until the deductible has been met.
Tags: Accounts, Health Savings, Health Savings Accounts, Savings Accounts
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Is A Health Savings Account The Same As A 501(c)3?
Posted on May 4th, 2011
If you are wondering if Health Savings Accounts are the same as 501(c)3 corporations, then the answer is no. A 501(c)3 corporation is a tax-exempt organization formed for the purpose of educational or charitable activities. Health Savings Accounts, on the other hand, are simply a tax-advantaged way of saving money when it comes to paying for future medical bills.
A Health Savings Account basically helps reduce your income taxes – both federal and almost always state taxes. Contributions placed in your HSA are tax-deferred and withdrawals are tax-free when used to pay for qualified medical expenses. A 20-percent penalty may apply if you use the money for other purposes.
Tags: Health Savings, Health Savings Account, Same, Savings Account
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Health Savings Account Tax Tip
Posted on April 30th, 2011
Although Health Savings Accounts have been around since 2004, many people are still missing out on the tax savings they offer because they don’t understand how a Health Savings Account (HSA) works.
HSA Plans are really simple. They’re so easy to use that you don’t even need to itemize deductions to take advantage of their savings when you file your taxes.
Kathy Pickering of H&R Block says, “You put your money into the Health Savings Account tax free, and then it grows tax free.
Tags: Health Savings, Health Savings Account, Savings Account, Tax
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Health Savings Accounts Are Now Available To Public Employees
Posted on April 24th, 2011
Over the years, Health Savings Account plans were never offered to public employees. With the recently passed legislation, a health savings account option with a qualified high-deductible HSA health plan is now available to public employees, too. This law allows state workers to have more control over their health care costs and their savings.
To be used with an HSA, health insurance must have an annual deductible of at least $1,200 for individuals and annual out-of-the-pocket expenses are limited to $5,950. Like most high-deductible HSA plans, these policies are considerably less expensive than most co-pay plans. In addition to a way to save on health insurance premiums, HSA plans offer another advantage.
Tags: Employees, Health Savings, Public Employees
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A Health Savings Account Acts Like A Medical IRA
Posted on April 19th, 2011
With an IRA, you can’t get to your money until you’re 65, but with a Health Savings Account (HSA), you can use those funds for qualified medical expenses whenever needed and still earn tax-free interest on whatever is left until you turn 65. One of the best things about having an HSA is that your funds roll over at yearend. You never lose the balance like you do with a Flexible Spending Account.
However, there are some limitations with an HSA. Health Savings Accounts have a maximum yearly contribution limit of $3,050 for individual coverage and $6,150 for family coverage. No contribution is every required, but you may make an additional $1,000 contribution each year if your are at least 55 years old.
Tags: Health Savings, Health Savings Account, Ira, Savings Account
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