Archive for December, 2007
What are your experiences with HSAs (Health Savings Accounts)?
Evelyn S asked:
An individual can open an HSA if he/she has a high deductible on his/her health insurance premium. The scheme offers some tax advantages–
1) contributions are tax deductible going in;
2) appreciation is tax free;
3) withdrawls are tax free for qualifying expenses.
But are these savings accounts as good as they sound on paper?
Marty Shillinger
An individual can open an HSA if he/she has a high deductible on his/her health insurance premium. The scheme offers some tax advantages–
1) contributions are tax deductible going in;
2) appreciation is tax free;
3) withdrawls are tax free for qualifying expenses.
But are these savings accounts as good as they sound on paper?
Marty Shillinger
How can I spend the money in my Health Savings if I leave my job and lose my High deductable plan?
soldoldman asked:
I added $200 to start the account. The company puts in $84 each month. I put and additional $20 each month. Right now it is only a few hundred but I plan to leave company and move to another state. Can I put money in another place such as regular style savings or a current company 401 K? If I leave company and choose to cash out do I only pay tax and have a way to avoid penalty? Am I stuck and can only pay tax and penalty. Can I still use the money (until it is used up) for OTC or doctor if I am not enrolled in a Qualifying High deductable plan, because of changing job and insurance?
Javier Shappen
I added $200 to start the account. The company puts in $84 each month. I put and additional $20 each month. Right now it is only a few hundred but I plan to leave company and move to another state. Can I put money in another place such as regular style savings or a current company 401 K? If I leave company and choose to cash out do I only pay tax and have a way to avoid penalty? Am I stuck and can only pay tax and penalty. Can I still use the money (until it is used up) for OTC or doctor if I am not enrolled in a Qualifying High deductable plan, because of changing job and insurance?
Javier Shappen