HSAs can also be used as a stealth individual retirement account, but the majority of people are unsure of how to inquire about them. While flexible spending accounts (FSAs) allow users to put away a maximum of $2,500 in pretax dollars every year for medical bills, HSAs do the same but with a higher maximum amount. In 2014, HSAs permitted individuals to set aside a maximum of $3,300, and families a maximum of $6,550, as well as a $1,000 catch-up contribution for people ages 55 and older.
Any remaining funds in the HSA will be rolled over each year and grow tax-free. You can withdraw funds on a tax-free basis from the HSA to cover medical bills at any age. But if you withdraw funds after you reach age 65 for other reasons, the amount will be subject to tax at normal income tax rates.
However, HSAs are not always affordable. They are normally combined with high-deductible insurance plans, which provide lower premiums, but call for greater out-of-pocket payments prior to the time at which coverage becomes effective. In 2014, the minimum deductible for one person was $1,250, and for a family, $2,500. The maximum out-of-pocket expenses for one person was $6,350, and for a family, $12,700.
Even when HSAs are within your budget, you should carefully examine the investment choices offered by an HSA. The majority of the time the funds are invested in money market accounts. It is advisable to first use plans that have greater yearly contribution limits, such as 401(k)s and IRAs.
The elder law attorneys at Hook Law Center assist Virginia families with will preparation, trust & estate administration, guardianships and conservatorships, long-term care planning, special needs planning, veterans benefits, and more. To learn more, visit http://www.hooklawcenter.com/ or call 757-399-7506.
The post A retirement savings account can include health savings accounts first appeared on SEONewsWire.net.]]>Whether you know it or not, with all the changes over the last few years in the health care field, health care has become more simplified. It might not seem like it, but health reform has begun to make its presence known. One of the major things you should notice is that when you are shopping for affordable health insurance, it actually is affordable. It will also, across the board, come with several basic options, no matter who you choose to buy your policy from in the first place. In short, the industry now has some standardized rules that may benefit those still looking to buy insurance before 2014.
One thing in your favor is that there is now no lifetime cap. At one time insurance companies capped people out between $2 and $5 million. While many individuals would likely not run bills that high, a family facing critical illness would run through that amount in no time flat. Without the lifetime cap, consumers have more health security.
Another bit of good news is that insurance companies must cover the costs of any wellness exams you may have — 100 percent of the cost, not just a portion. Furthermore, the exams are not subject to a deductible or co-pay. It goes without saying that wellness checkups only make good sense. Get yourself checked out once a year and stay healthy and well. This is a benefit not just to you, but to the health care system, as healthy people don’t need to see the doctor as much. Additionally, these days all children under the age of 19 may qualify for an individual health insurance plan, whether they have pre-existing conditions or not.
What suits you? Take the time to find out what is out there now, as it is radically different than even four years ago. There are more policies, more choices, more options and more flexibility. Just about anything you can conceive of in terms of health insurance coverage is now possible. It’s a buyer’s market for a change and you might be pleasantly surprised to find that what you once thought was impossible, is now not only possible, but reasonably priced and fits you like a glove.
Just remember, there are still tons of health insurance plans available when you shop online. Choose from HMO, major medical, PPO, HSA plans, co-pay plans and so forth. Confusing? Maybe, but that’s when you get smart and work with your broker. They know their products and if you tell them what you need, they can find it for you a lot faster than you can. Shopping for affordable health insurance is no longer like having a root canal.
To learn more click here and get a health insurance quote, visit http://www.benepath.com
