People without health insurance go through life without a safety net, usually because they fear the costs associated with health inurance. Health insurance can be very expensive; sometimes it is so expensive that people feel that it is worth the gamble to live without. One kind of insurance that is growing in popularity allows people to have health insurance coverage while at the same time gaining some budgetary and tax advantages is a Health Savings Account (HSA).
An HSA allows people to pay for qualifying medical expenses before income tax is taken, while at the same time, the person can save for retirement and get a tax-deferment. HSA’s have been compared to individual retirement accounts, but an HSA is often considered better. Money is deposited into an HSA before tax money has been removed and the person who owns the HSA can withdraw that money at any time for qualified medical expenses. The owner of the HSA can also take the money out of the account and use it for non-medical reasons, but the money will then be taxed as normal income and the owner will face a 10 percent penalty if the money is withdrawn for non-medical reasons before the owner is 65.
Funds not used at the end of the year remain in the HSA and can earn tax-free interest which will then be added to the money accrued in the HSA to be used on medical expenses in the future. Unlike an IRA, an employer can contribute to an HSA that an employee owns. The maximum yearly contribution for an HSA is $3,050 for an individual, and $6,150 for families. Although the owner of an HSA is not required to make the maximum contribution each year, sometimes HSA administrators require a monthly minimum deposit into the account. People between 55 and 65 years of age are allowed to make additional payments of $1,000 as a catch up to help them build up their HSA totals before they reach 65 years of age.
At the end of the year, the HSA owner will receive a statement with the amount of money that was contributed. The HSA owner can deduct the amount that is equal to or lower than the maximum $3,050 for an individual or $6,150 for a family from their taxes, making an HSA an additional tax deduction. There are additional deductions with some qualifiers for people who own HSA’s and who also own their own business.
It is important to shop around if interested in purchasing an HSA. Different institutions charge different fees which can include setup fess, monthly maintenance fees, and check fees. it is important to investigate the different HSA administrator options available and ehalthinsurance offers a convenient method to do that all at one simple website. Each consumer can fill out an insurance application, then select their HAS Administrator that will best fit their particular needs.
eHealthinsurance offers a large selection of insurance plans that are easy to find and easy to search to help find the right kind of insurance, including finding an HSA plan for any individual or family. With the assistance that eHalthinsurance is able to give customers; the search for the right health insurance will be much easier to manage. Give eHealthinurance a try today to find out what they can do for you.