• baner

Health Savings Accounts

pdf-iconPrint Article

Introduction

Retirement accounts are the most commonly used tax sheltered accounts. Another less commonly known savings tool is an HSA (Health Savings Account). HSAs are individual accounts offered by employers in combination with a high-deductible health plan (HDHP). The advantages of an HSA are:

  1. The money saved is on a pre-tax basis;
  2. There are no taxes due on the investment growth;
  3. Withdrawals for qualified medical expenses are never subject to income tax;
  4. After age 65, an HSA essentially transforms into an IRA.

What is an HSA?

Created as part of the Medicare reform in 2003, HSAs were designed to give adults covered by HDHPs the ability to establish tax-advantaged savings accounts to use for qualified medical expenses. *HSA contributors must be covered by a qualified HDHP and must not be covered by any other health plan.

High-deductible health insurance plans are defined as:

  • A deductible that is more than $1,250 for self-only coverage or $2,500 for family coverage,
  • The annual out-of-pocket expenses (deductibles, co-payments) which exceed $6,350 for self only and $12,700 for family.

Regardless of age, anyone can set up an HSA and contribute yearly as long as the participant has a qualified HDHP and is not enrolled in Medicare.

How much can be contributed?

Employees use pretax dollars to make contributions to HSAs. The IRS maximum annual contribution limit for HSAs in 2015 is $3,350 for people with individual health plans, and $6,650 for those with family health plans.

*Health plans must be HSA approved. Depending on the size of the company, setup, admin and annual costs apply.

Pages: 1 2 3

Health Savings Accounts

pdf-iconPrint Article

Introduction

Retirement accounts are the most commonly used tax sheltered accounts. Another less commonly known savings tool is an HSA (Health Savings Account). HSAs are individual accounts offered by employers in combination with a high-deductible health plan (HDHP). The advantages of an HSA are:

  1. The money saved is on a pre-tax basis;
  2. There are no taxes due on the investment growth;
  3. Withdrawals for qualified medical expenses are never subject to income tax;
  4. After age 65, an HSA essentially transforms into an IRA.

What is an HSA?

Created as part of the Medicare reform in 2003, HSAs were designed to give adults covered by HDHPs the ability to establish tax-advantaged savings accounts to use for qualified medical expenses. *HSA contributors must be covered by a qualified HDHP and must not be covered by any other health plan.

High-deductible health insurance plans are defined as:

  • A deductible that is more than $1,250 for self-only coverage or $2,500 for family coverage,
  • The annual out-of-pocket expenses (deductibles, co-payments) which exceed $6,350 for self only and $12,700 for family.

Regardless of age, anyone can set up an HSA and contribute yearly as long as the participant has a qualified HDHP and is not enrolled in Medicare.

How much can be contributed?

Employees use pretax dollars to make contributions to HSAs. The IRS maximum annual contribution limit for HSAs in 2015 is $3,350 for people with individual health plans, and $6,650 for those with family health plans.

*Health plans must be HSA approved. Depending on the size of the company, setup, admin and annual costs apply.

Pages: 1 2 3

Health Savings Accounts

pdf-iconPrint Article

Introduction

Retirement accounts are the most commonly used tax sheltered accounts. Another less commonly known savings tool is an HSA (Health Savings Account). HSAs are individual accounts offered by employers in combination with a high-deductible health plan (HDHP). The advantages of an HSA are:

  1. The money saved is on a pre-tax basis;
  2. There are no taxes due on the investment growth;
  3. Withdrawals for qualified medical expenses are never subject to income tax;
  4. After age 65, an HSA essentially transforms into an IRA.

What is an HSA?

Created as part of the Medicare reform in 2003, HSAs were designed to give adults covered by HDHPs the ability to establish tax-advantaged savings accounts to use for qualified medical expenses. *HSA contributors must be covered by a qualified HDHP and must not be covered by any other health plan.

High-deductible health insurance plans are defined as:

  • A deductible that is more than $1,250 for self-only coverage or $2,500 for family coverage,
  • The annual out-of-pocket expenses (deductibles, co-payments) which exceed $6,350 for self only and $12,700 for family.

Regardless of age, anyone can set up an HSA and contribute yearly as long as the participant has a qualified HDHP and is not enrolled in Medicare.

How much can be contributed?

Employees use pretax dollars to make contributions to HSAs. The IRS maximum annual contribution limit for HSAs in 2015 is $3,350 for people with individual health plans, and $6,650 for those with family health plans.

*Health plans must be HSA approved. Depending on the size of the company, setup, admin and annual costs apply.

Pages: 1 2 3

Wealth Advisory Articles

  • Asset Protection Planning: QPRTs

    Qualified Personal Residence Trust Introduction It’s natural for us to want to hold onto our

  • Tax Planning 2015

    Tax Law Changes Introduction A new year also brings new changes in U.S. policies that can hav

  • Asset Protection Planning

    Be Safe, Not Sorry Introduction They say it’s better to be safe than sorry. When it comes to

  • Flexible Spending Accounts

    Saving, Flexibly. Introduction Flexible Spending Accounts (FSA)s were introduced in the late 1

  • Health Savings Accounts

    Introduction Retirement accounts are the most commonly used tax sheltered accounts. Another les

  • Family Matters

    Long-Term Care Insurance With an aging population and longer life expectancies, caring for an o

  • Family Office Planning

    Family Office Planning Wealth has the ability to help families achieve their personal goals, s

  • Case Study on 401k and ERISA Regulations

    Three Weddings and a Funeral When it comes to protecting your assets, covering all of your base

  • Estate Planning

    Estate Planning, Explained. In planning for the future financial state of your family, it is im

  • 529 Plan

    Acing Your Children’s College Tuition The 529 Plan: College Savings 101 Today, there are man

Riverview Capital Advisers
265 Franklin Street
Suite 1605
Boston, Massachusetts 02110
(617) 423-0080