Golden Rule's HSA Calculator
Would you like to keep the difference and pay yourself, or bank the savings in a tax free account, and then use those savings for medical expenses tax free as well? If you answer yes, then an HSA High Deductible Health Plan might be right for you.
These plans are designed for savvy individuals and families who want the security of a comprehensive health insurance plan, but want more control of the cost of the coverage, and are willing to self insure the deductible portion.
Many cost conscious individuals have already raised their deductibles on their home owners and auto insurance in exchange for lower premiums, but how many individuals realize the same benefit with their health insurance?
Unlike your home owners and auto insurance deductibles, your health insurance deductible can also be tax deductible each year with the use of an IRS approved H.S.A. (Health Savings Account).
The amount you can contribute each year per person or per family changes annually but for 2010 the tax deductible contribution limits are $3,050 for self-only and $6,150 for family coverage. A catch-up contribution is available for taxpayers 55 and older of $1,000.
For calendar year 2010, a and#226;and#128;and#156;high deductible health planand#226;and#128;and#157; is defined under IRS and#194;and#167; 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,200 for self-only coverage or $2,400 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $5,950 for self-only coverage or $11,900 for family coverage.
The HSAand#226;and#128;and#153;s have a few more moving parts than your traditional insurance plan, but can you really afford to continue paying up to 50% more for your medical insurance when there is a more cost effective solution? You wonand#226;and#128;and#153;t have to administer the plan unless you want to do so. Most insurers offer administration either free or for a very low fee.
Many insurers will also provide the savings account as part of your insurance plan, and will include a debit card that you can use to pay for approved medical expenses right out of your savings account.
Take a quick look at how these plans work at Golden Ruleand#226;and#128;and#153;s award winning HSA website: http://www.hsacenter.com/index.html. Add a Comment Back to All Articles
