Health Savings Account-Health Savings Account Info

JackRoyerton asked:


I have a few questions concerning Form 8889.

1. If I have my employer subtract $10.00 from each of my paychecks to invest in my HSA, can I deduct $260 on line 2 of this form? My employer’s contribution is $1000, and I listed this in line 9 of the form.

2. I received a 1099-SA, and there was an amount of $525 in box 1 of that form. I understand I need to put that amount in line 14a of the 8889 form, but can I also list the $525 in box 15 if I used 100% of this $525 for qualified medical expenses? Box 16 would then by zero, which I assume it should be since I used the entire amount for medical expenses.

Thank you so much. I have the rest of my tax forms ready, but this Form 8889 is really confusing me.
I stated the first part of my question a bit confusing. The $10 I contribute bi-weekly to my HSA is through payroll deduction (that’s the $260 amount I was going to put in line 2). Line 9 is directly from my employer ($1000). In this case, is the $260 from payroll deduction something I cannot list on line 2 since it is from payroll deduction?

Jane Boulette

B C asked:


My employer is talking about going to a Health Saving Account system with a high deductable, and getting enough money to meet that deductable in a reasonable time worries me, should it?

Kirsten Fennessey

DJP asked:


Can I use money in my HSA for medical care I receive outside the US?

Thanks.

Wiley Reye

tetris asked:


I am overweight and I need to lose few pounds, can I pay my Gym membership from my HSA ? do I need something written from my doctor as a proof?

Randall Williams

Robert W asked:


I’ve already chosen a good insurance plan, but now I have to choose a good bank along with investment choices for the savings side of things. I’ve looked at Chase and Well’s Fargo. Both charge monthly maintence fees of up to $6 per month if you want to have mutual funds in it. These high fees ****. Has anyone looked into this and found better choices?

Orval Heiney

What the fu– asked:


So, if we go with an HSA, we’ll have a $2600 deductible, $6000 out of pocket maximum and a monthly premium rate of $557. I am an idiot about this stuff–I admit it! So, do we pay that ridiculous amout of 557 a month AND pay full price for every doctor visit until the 2600 deductible is met? Or does that 557 go into an HSA that we manage? I don’t know yet if the employer is contributing. And please explain out of pocket. Really appreciate any help!
This is a family plan. We have a baby and are in our late 30′s.

Gwenda Zumbo

Number 14 asked:


I see that there is “Line 25, Form 8889″ Health Savings Account, can I deduct the $520 that I set aside from my paycheck on that line?

Dennis Loughran

GREAT_AMERICAN asked:


How to employ market reforms? Here are five simple steps.

* Make health insurance more like other types of insurance. Health savings accounts, which passed as part of the Medicare reforms of 2003, were an important first step, separating smaller expenses from high-deductible insurance, for catastrophic events. However, the legislation is overly rigid. Congress must expand and revise the structure of HSAs, and level the tax playing field for those not covered by an employer plan.
* Foster competition. American health care is the most regulated sector in the economy. The result? A health insurance policy for a 30-year old man costs four times more in New York than in neighboring Connecticut because of the multitude of regulations in the Empire State. Americans can shop out-of-state for a mortgage; they should be able to do so for health insurance. Likewise, many laws intended to promote fairness end up reducing competition and thus innovation. Congress should reconsider such laws, beginning with the federal Emergency Medical Treatment and Active Labor Act (EMTALA).
* Reform Medicaid, using welfare reform as the template. Medicaid spending is spiraling up, now consuming more dollars at the state level than K-12 education. Like the old Aid to Families with Dependent Children, part of the problem stems from the fact that the program is shared between both the federal and state government — and is thus owned by neither. Congress should fund Medicaid with block grants to the states, and let them innovate.
* Revisit Medicare. Back in the late 1990s, a bipartisan commission approved a reasonable starting point for Medicare — junking the price controls, and using the Federal Employees Health Benefits Plan as a model. Elderly Americans would then have a choice among competing private plans. Given that the unfunded liability of Medicare is four times greater than that of social security, the time is right to experiment with this idea.
* Address prescription drug prices by pruning the size and scope of the FDA. It costs nearly a billion dollars for a prescription drug to reach the market, and roughly 40% of that is due to safety requirements. This is effectively a massive tax on pharmaceuticals. With new technology and focus, it would be possible to update the FDA, drawing from President George H. W. Bush’s experiments with contracting out certain approval steps to private organizations, which boasted lower costs and faster approval times.

Noe Rodino