Many Health Savings Account Owners Make IRA Transfer
Fort Collins, CO (PRWEB) July 1, 2008
Eligible individuals can now make a one-time tax-free transfer of individual retirement account (IRA) funds to start a health savings account (HSA) under the guidelines set down in IRC Sec. 223. Under the amendment, employees can use what was originally in their IRA to pay for medical benefits without having to pay for the 10% additional tax under IRC Sec. 72(t).
The legislation also allows you to use of existing funds in your IRA as a source of tax-free contribution to your existing HSA. Wiley Long, president of HSA for America, explained the benefits of this strategy. “It makes a lot of sense to transfer money from your IRA to your HSA, particularly if you don’t have enough cash on hand to fully fund it for the year. Once that money is transferred the HSA, you can spend it on medical expenses without ever being taxed on the money. This is a tremendous financial benefit.” HSA for America is one of the leading providers of HSA-qualified health insurance plans for American small business owners and employees.
The owner of an HSA is also eligible for a second transfer within the same taxable year if he has a self-only high deductible health plan (HDHP) during the period of the IRA transfer, and within that same period purchases family HDHP coverage. The fund distribution remains tax-free. Long says that this strategy has been popular among his customers. “This is a great provision for someone who wants to get their account fully funded, so they know they’ve got the money to cover a deductible. That way, they can carry a higher deductible, lower-priced health insurance plan.”
There are several conditions for eligibility for the tax advantages under the 2006 amendment. The individual making the transfer must remain eligible within 12 months of the IRA to HSA funding distribution, referred to as the “testing period.” If within that period, the individual becomes ineligible, then the transferred amount will be subject to the usual income taxes. Furthermore, the amount transferred will be deducted from the maximum allowed HSA contribution for that year.
Long explained the reason many of his customers are making this transfer. “Having money from an IRA work for immediate medical needs frees up some funds that would otherwise go to tax payments. The value of an HSA is especially high when the account holder is still productive, to stave off the pressures of high taxation and rising medical care costs.”
Transferring funds from an IRA to an HSA enables individuals to reduce their potential tax liabilities, and to also lower their health insurance premiums by switching to higher deductible plans.
HSA for America is one of the leading providers of health savings accounts, health reimbursement accounts, and related information for employees and small business owners across America. HSA accounts are an effective way of saving money on healthcare costs and taxes and have an investment module at the very same time. Learn more about Health Savings Accounts at our free weekly teleseminar which you can sign up for at: http://www.health–savings–accounts.com/teleseminar.htm.
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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Deadline Draws Near for 2008 Health Savings Account Tax-Savings
Fort Collins, CO (PRWEB) October 14, 2008
With the upheaval in our economy, there has been quite a surge in the number of people applying for an HSA-qualified health plan. Health Savings Accounts, or HSAs, allow you to put aside pre-tax money to cover future medical expenses. Anyone with a plan effective no later than December 1st is qualified to make a 2008 tax deductible contribution to their HSA, and may be able to reduce the taxes they owe on April 15th by $ 1900 or more.
While conventional co-pay plans continue to be popular, more people are choosing to invest in plans that work with a Health Savings Account. According to Wiley Long, President at HSA for America, “In times like these people are looking for ways to reduce their health insurance expenses and they certainly don’t want to pay more taxes than they have to.” HSA plans have premiums that are much lower than conventional copay plans. And any money deposited into the HSA is tax deductible, which will directly lower your taxable income.
In addition to reducing their premiums and lowering their taxes, HSA holders also are able to begin building a tax-deferred medical retirement account. Any growth to this account is tax-deferred and if a withdrawal is made for medical expenses, that withdrawal is tax-free.
If you have seriously considered making changes to your current health care plan, now is the time to act. You must have your HSA-qualified health insurance in force no later than December 1 in order to take advantage of your 2008 HSA contribution, and receive the accompanying tax reduction. Because the underwriting process can sometimes take a few weeks, most experts recommend that you apply for a plan as soon as possible.
Anyone who does have a plan in place before December 1st will be able to contribute to their HSA for 2008 up to $ 2,900 as an individual, or up to $ 5,800 as a family. People over 55 years old can also make an additional contribution of up to $ 900 to their account. Someone in a 28% tax bracket who makes a $ 5,800 contribution will reduce their April 15th tax bill by $ 1,624 – even more when they count the savings on state income taxes.
Please visit our website at http://www.HSAforAmerica.com to find complete details about available HSA plans. You will also find answers to questions you likely have about these plans and testimonials of people who have already made the switch to an HSA plan. Long stated, “We’ve never been so busy. Everybody is interested in saving money, and finding tax-sheltered ways to save for the future.”
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©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
IRS Raises Heath Savings Account Contribution Limits
Fort Collins, CO (PRWEB) June 12, 2008
The IRS and Department of Treasury have elevated the ceiling for contributions to tax-deductible health savings accounts.
By increasing maximum HSA contributions for 2009, the IRS and Department of Treasury has made it more attractive for individuals and employers to consider health savings accounts (HSA) when looking at health insurance options. Money contributed to an HSA is tax-deductible, and can be used to pay qualified medical expenses tax-free.
The contribution limit has been raised to $ 3000 for individuals and $ 5950 for families. This is up from 2008 limits of $ 2800 for individuals, and $ 5800 for families. Individuals who are 55 or older are also allowed to make up to an additional $ 1,000 a year in “catch up” contributions.
America’s Health Insurance Plans (AHIP) data shows that enrollment in high-deductible health plans eligible to be tied with health savings accounts grew to 6.1 million in 2007, growing fastest in the small group market. According to Wiley Long, president of HSA for America, “The higher contribution limits make HSAs an even better value than before, which will no doubt just accelerrate the movement towards these types of plans. Not only are HSA-qualified health insurance plans less expensive, but the tax-deduction really makes them a no-brainer, particularly for people who are paying for some or all of their own health insurance costs.”
HSAs are similar to Individual Retirement Accounts (IRAs). The account is owned by the individual HSA holder, it is portable and is not dependent on continued employment with a particular employer, and money in the account grows tax-deferred. The big advantage over an IRA is that only with an HSA can money can be withdrawn from the account tax-free to pay for qualified medical expenses.
“Most of our customers keep enough of their HSA money to cover their deductible in an easily accessible savings account. As their savings grow, they’ll usually invest additional HSA funds in mutual funds or other investments with larger growth potential”, said Long.
Individuals have until December 1 to obtain a qualifying high-deductible health plan in 2008 if they wish to take the deduction on 2008 taxes. Contributions can be made as late as April 15th.
The recent HSA contribution increases announced by the Internal Revenue Service means that policy holders can get an even larger tax deduction when maximizing their HSA contribution. This change will make these plans even more attractive as millions of people continue to transition from conventional co-pay health insurance plans, to high deductible HSA-qualified plans.
HSA for America is one of the leading providers of health savings accounts, health reimbursement accounts, and related information for employees and small business owners across America. HSA accounts are an effective way of saving money on healthcare costs and taxes and have an investment module at the very same time. Learn more about Health Savings Accounts at our free weekly teleseminar which you can sign up for at: http://www.health–savings–accounts.com/teleseminar.htm
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©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
$ 4 Wal-Mart Drugs Increase Health Savings Account Appeal
Fort Collins, CO (PRWEB) September 27, 2006
Wal-Mart’s announcement last week that they will be offering 291 generic prescription drugs for just $ 4 a month has already resulted in an increased interest in HSA-compatible health insurance plans according to industry leader HSA for America.
“I think people realize that if they can buy their prescriptions drugs that inexpensively, it doesn’t make sense to pay a lot of money for a health insurance plan that offers $ 15 copays for generic drugs,” says Wiley Long, president of HSA for America.
Health savings accounts, or HSAs, are tax-favored accounts that can be used to save tax-free for future medical expenses. They are available to anyone who has an HSA-qualified high deductible health plan. These plans have deductibles starting at $ 1,050 for individuals and $ 2,100 for families, and do not cover prescriptions until the deductible is met.
“The higher deductible can take a little getting used to for people who are accustomed to low co-pays for prescription drugs and doctor visits. But when you consider that premiums are 30 – 40% less than traditional co-pay plans, it really makes a lot of sense,” he said.
Long says another appeal to HSAs is the fact that if the money in the account is not used to pay for medical expenses, it grows tax-free like an IRA. “Some people are calling these plans ‘medical retirement accounts’, because they are a great way to save for medical expenses we will all face in old age. Not only is the money deposited in the account tax-deductible, but any money taken out to pay for medical expenses can be withdrawn tax-free.”
Currently there are nearly 3 million HSAs, and nearly $ 5 billion deposited in these accounts. Over 50,000 new accounts are being opened each month, and some experts predict that by 2010 there will be as many as 25 million HSAs covering over 70 million people.
Long estimates that interest has surged 20% since Wal-Mart’s announcement of lower drug prices.
Learn more about Health Savings Accounts and what they can do for you at: http://www.health–savings–accounts.com
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©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
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Insurance Company Defies Customer Service Logic; Ensures Availability Night and Day as 2009 Health Savings Account Enrollment Deadline Nears
Fort Collins, Colorado (PRWEB) November 4, 2009
HSA for America insurance agents have found a new way to help consumers make sense out of the increasingly complex national health insurance system by expanding their customer service hours. Consumers can now reach live U.S.-based HAS for America customer service representatives from 9 a.m. to 11 p.m. EST 7 days a week through their Toll-free number. HSA for America agents are available during these extended hours to help consumers select the best Health Savings Account plans for their needs, which is especially helpful as the 2009 enrollment deadline nears.
HSA for America insurance advisors decided to expand their customer service hours in response to the overwhelming increase in interest for their money-saving Health Savings Account plans. Health Savings Account plans can not only save consumers an average of $ 100 to $ 300 per month in health insurance premiums, but they can also help consumers to grow their wealth as they invest their Health Savings Account funds into high-interest yielding investments.
“Our insurance advisors have been reporting higher-than-average inquiries from consumers as the 2009 HSA deadline approaches,” said Wiley Long, President of HSA for America. “Many of our new clients have converted their health insurance plans to Health Savings Account-eligible plans to save money and reduce their annual income taxes.”
Long attributes the increase in new client inquiries to the widespread changes within America’s healthcare system. “We’ve found that many of our clients are struggling to keep up with both the actual and proposed changes to the U.S. healthcare system,” said Long. “By increasing our customer service hours, we can help to ensure that consumers are able to get accurate information when they need it in order to make wise healthcare decisions that will truly benefit their families – and their bank accounts – for years to come.”
Heads up, applicants! Long wants consumers to be aware of the upcoming enrollment deadline for 2009 Health Savings Accounts. In order for Health Savings Accounts to qualify for a tax deduction in 2009, participants need to have HSA-qualified health insurance effective by December 1, 2009. “We want all consumers to know that we are here to help them get the right Health Savings Account plans for their needs in time for them to lower their April 15th tax bill,” said Long. “But we recommend they apply for these new plans by November 13 at the latest. We’re here for them whenever they’re ready to get started.” Consumers can speak with an HAS for America representative by calling (866) 749-2039.
More About HSA for America
HSA for America advisors help to match clients with the right healthcare plans for their unique needs and budgets. Clients may include individuals, families, and businesses that are looking to save money, grow their wealth, or just ensure that they have the most cost-effective and practical healthcare plans available. In order to ensure that clients continually take advantage of the best healthcare coverage options for their unique situations, HSA for America provides an automatic Annual Comprehensive Policy Review of each client’s healthcare coverage plan.
For more information about HSA for America programs, visit http://www.health–savings–accounts.com.
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©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Tax Write-Off Results in Last Minute Surge of Health Savings Account Sign-Ups
Fort Collins, CO (PRWEB) November 13, 2009
The appeal of an additional $ 5,950 tax write-off is spurring thousands of individuals to switch to a health insurance plan that works with a Health Savings Account (HSA), before the end of the year.
“We’re getting a tremendous number of inquiries from people who are interested in the tax benefits,” said HSA for America President Wiley Long. “A family with a qualifying high-deductible health plan can put up to $ 5,950 into their HSA, but their health insurance must be effective no later than December 1 for them to qualify for the 2009 tax deduction.”
Health Savings Accounts are special tax-favored savings accounts that anyone with a qualified high-deductible health insurance plan can open and fund. Any money put in the account is tax deductible, and can be used tax-free to pay for future medical expenses. If the money is not withdrawn, it continues to grow tax-deferred like an IRA. Health Savings Accounts first became available in January 2004, and today nearly twelve million people are covered by an HSA-qualified health insurance plan.
Long said that in addition to the immediate tax benefits, there are many other reasons a record number of people have signed up for HSA plans. “These plans are about 40% less expensive than conventional co-pay plans. Many people also like the fact that they can use money from their HSA to pay for alternative care like acupuncture or homeopathy. And finally, many people consider their HSA to be a second retirement account. Some people will have over $ 1 million in their account by the time they retire.”
According to Fidelity Investments, the average couple retiring in 2009 will need over $ 220,000 to cover medical expenses, not even counting dental, over-the-counter medications, or long-term care. “Those who have an HSA could have thousands of additional dollars available to them to cover these expenses in their retirement years,” added Long.
To help people who are buying their own health insurance understand these changes, HSA for America is hosting weekly HSA teleseminars to explain these plans. “If someone can get their coverage in place before December 1, they can reduce the amount they pay Uncle Sam on April 15 by $ 1,800 or more,” said Long. “But they really do need to apply right away.”
HSA for America offers instant quotes and online applications for HSA-qualified health insurance plans on their website. They will also help new customers choose a bank for their HSA, and set up their account.
About HSA for America
HSA for America is the nation’s leading independent health insurance firm specializing in individual and family coverage that works with a Health Savings Account. Through our comprehensive website we offer complete information on Health Savings Accounts and qualifying health insurance plans. We offer instant quotes, online health insurance applications, and access to several banks that can act as an HSA administrator for your account. Visit http://www.health–savings–accounts.com for complete information.
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©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
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HSA for America Presents New Informative Health Savings Account Teleseminar Series
Fort Collins, CO (PRWEB) December 12, 2007 -
HSA for America, the leading source for individual and family HSA-qualified health insurance plans, announced today a series of free teleseminars to help individuals and families who purchase their own health insurance. The first, to be held this Thursday December 13th, will be on the topic of Health Savings Accounts, or HSAs.
HSAs are special tax-deferred accounts where someone can put aside tax-deductible money, which can then be used to pay for future medical expenses, tax-free. If the money is not used, it simply grows tax-deferred, like an IRA. Available since January 2004, HSAs have become the most popular type of health insurance coverage purchased by individuals.
“Our typical customer is saving $ 1,000 or more in taxes, and cutting their health insurance premium by 40%,” says Wiley Long, president of HSA for America. “Yet many people are still confused about how HSA plans work, because they are very different than typical health insurance plans that offer copays for doctor visits and prescriptions.”
The teleseminar will cover how HSAs work, how they can be used to build a medical retirement account, and why HSAs are so popular with people who use alternative medical treatments like homeopathy and acupuncture. The phone lines will also be open to allow callers to get any questions they have about HSAs answered. You can sign up for HSA for America’s teleseminar at: http://www.Health–Savings–Accounts.com/teleseminar.htm
A family who has their HSA-qualified health insurance approved before January 1st can contribute up to $ 5,650 into their health savings account. “We expect to have a lot of people at these teleseminars, because most people have put this off until the very last minute”, added Long.
About HSA for America:
HSA for America is the nation’s leading independent health insurance firm specializing in individual and family coverage that works with a Health Savings Account. Through our comprehensive website (http://www.Health–Savings–Accounts.com) we offer complete information on HSAs and qualifying health insurance plans. We offer instant quotes, online health insurance applications, and access to several banks that can act as an HSA administrator for your account.
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©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
Fort Collins, CO (PRWEB) February 22, 2007
Fort Collins, CO February 22, 2007 — HSA for America announced today its partnership with MedBillManager to offer their Medical Bill Tracker web-services for all of HSA for America’s clients. Medical Bill Tracker is an internet-based tool that consumers can use to organize, reconcile, and compare costs for all of their family’s medical bills, payments, and insurance statements any time and on any computer. HSA for America’s version of Medical Bill Tracker will launched today as an addition to the HSA-qualified health insurance plans they offer.
According to Wiley Long, President of HSA for America, “As a company, we are focused squarely on enabling consumers with the best solutions for meeting the challenges of managing one’s healthcare dollar and insurance premium. The MedBillManager’s family of services perfectly compliments our services. By combining it with an HSA-qualified health insurance plan, our clients will be able to more easily manage and compare each dollar they spend as well as track and report all tax deductible expenses and events.”
Medical Bill Tracker allows users to reduce the piles of paper associated with their medical bills and better understand and identify the associated expenses. It guides users in determining various options available to themselves as a healthcare consumer, ensures that they take full advantage of their available benefits, and supports their prudent management of their healthcare expenditures.
Christopher Parks, Chief Manager of MedBillManager, says “The burden of healthcare expenses are continuing to shift more and more to the shoulders of individuals, as is evidenced by the rapid growth and adoption of Health Savings Accounts. We are very excited to have this opportunity to work with HSA for America and empower individual consumers to better manage their healthcare expenses. Ultimately, our products provide them with better control over what is coming out of their pockets and help them address the stacks of medical bills and accompanying insurance statements that pile up on the kitchen table.”
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.
About MedBillManager
MedBillManager, LLC provides easy to use medical bill management services for consumers. Its services help people easily manage their medical bills, insurance statements, and Health Savings Accounts (HSAs). More importantly, MedBillManager’s web application provides users with competitive pricing options that may exist and allows users to anonymously compare their bills and insurance statements (EOBs) with the rest of the MedBillManager user. MedBillManager was founded in 2006 and is based in Nashville, Tennessee.
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