Health Savings Accounts
Health Savings Accounts (HSA), also referred to as Medical IRAs, allow eligible individuals to use tax- deferred dollars to supplement income at retirement and tax-free dollars to pay for certain non-covered medical, dental and vision care expenses as defined by IRC Section 213(d), including:
- over-the-counter drugs and supplies, purchase long-term care insurance, health insurance coverage while receiving unemployment compensation, as well as COBRA premiums
Contributions to the HSA can be made by employees and/or employers in the same plan year. Funds accumulate tax-free and roll forward each year. Participants own the account and it stays with them when changing jobs or health insurance coverage.
Health Savings Accounts can be established for any individual who has coverage under a qualified High Deductible Health Plan (HDHP) and is not enrolled in Medicare.
HSA LINKS:
HSA Road Rules (Employees/Individuals) January '08
HSA Road Rules (Employers) January '08
www.hsainsider.com
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