(PRWEB) April 6, 2005
10 Ways Health Savings Accounts Offer Tax Savings
Health Savings Accounts are helping individuals save thousands of dollars on their income taxes. These tax-favored accounts, which have only been available since January of 2004, can be opened by anyone with a qualifying high-deductible health insurance plan. Once you open an account, you can place tax-deductible contributions into it, which can then be used later to pay medical expenses. Any money not used grows tax-deferred, like an IRA.
1) Reduce your federal income taxes. Regardless of your income level or how your income was earned, any money you deposit into your Health Savings Account is considered an Âabove-the-lineÂ deduction, giving you a 100% write-off against adjusted gross income.
2) Reduce your adjusted gross income, helping you to qualify for other lucrative tax breaks tied to overall income.
4) Tax-deferred growth. Like funds in an IRA, the money in your account grows free from federal taxes.
5) Pay for dental expenses with pre-tax dollars.
6) Pay for vision care with pre-tax dollars.
7) Pay for alternative care with pre-tax dollars, including chiropractic, acupuncture, homeopathy, ayurvedic medicine, herbal medicine, or any number of other so-called alternative treatments.
8) Pay for aspirin, bandages, cold medicine, and other household medical expenses with pre-tax dollars. A list of HSA qualified expenses is available from HSA for America, or through Internal Revenue Service publication 502.
9) Pay Medicare expenses with pre-tax dollars, including Medicare premiums, deductibles, copays, and coinsurance.
10) Pay for long-term care insurance with pre-tax dollars.
A Health Savings Account (HSA) enables anyone with a qualifying high-deductible health insurance plan to shelter up to $5,250 from federal income taxes. By reducing your adjustable gross income, enabling you to pay for medical expenses with pre-tax income, and through tax-deferred growth, HSAs can reduce your income taxes in at least 10 ways.
About HSA for America:
HSA for America is a nationwide brokerage firm specializing in individual and family health insurance plans that are qualified to work with Health Savings Accounts. HSA for America represents many different insurance companies, offers instant quotes, online applications, and comparisons of HSA administrators. HSA for America provides this list as a quick reference, and it is NOT our intention to offer or provide tax advice.
HSA for America
Toll-Free Phone: (866) 254-5121
Toll-Free Fax: (866) 284-0082
# # #