Are you self employed or do you have a High Deductible Health Plan? If so, then you should have an AVB Health Savings Account. Not sure exactly what an HSA is? We're here to help. Read the helpful tips below:
I've heard of Health Savings Accounts, but I'm not sure exactly what they are.
A Health Savings Account (otherwise known as an HSA) is something that was created by Congress to help combat rising healthcare costs. It is similar to an IRA but is used exclusively to cover medical expenses.
How do I know if I qualify?
If you are covered under a High Deductible Health Plan (known as an HDHP), are not covered by any other health plan that is not an HDHP, are not enrolled in Medicare, and can't be claimed as a dependent on another person's tax return, then you are eligible.
What is an HDHP?
A High Deductible Health Plan is an insurance policy usually maintained by sole proprietors or the self employed. The current HDHP limit is $1,300 for an individual annual deductible and $6,450 for out-of-pocket expenses. The family limits are $2,600 for the deductible and $12,900 for out-of-pocket expenses.
Annual Contribution Limits for 2015:
- Single: $3,350
- Family: $6,650
- Catch-up Contributions: $1,000 for an account holder age 55 or older
- Out-of-pocket expenses include deductible, co-payments, and other amounts, but not premiums
What is in it for me?
HSAs can provide you with significant tax benefits not only related to paying qualified medical expenses, but also those similar to many retirement plans. Any unused HSA assets may be used for retirement and the HSA earnings are tax-deferred.
Still not sure if an HSA is for you? No problem. We're here to help! Simply call us at 918.251.9611 or drop by any of our offices.