HSA health plans, HSA medical, HSA Account and HSA insurance
An HSA is a Health Savings Account, and is way to reduce your tax liability. HSA health plans are not available to everyone. By law, HSA health plans are available only to people who are already enrolled in a High Deductible Health Plan (HDHP), are not enrolled in Medicare, are not covered by another health plan, or are not claimed as a dependent on someone else’s Federal tax return.
HSA health plans are actually savings products which offer a different way for individuals or families to pay for their healthcare. Families and individuals make their own decisions about how to spend the funds in the HSA account, and do not have to get approval from a third party. HSA health plans have flexible investment structures which allow the owners to decide what types of investments to make with the funds to help grow the HSA account.
Be cautious as you begin the enrollment process, as not all HDHP’s meet the federal criteria for being a properly-qualified HDPD. Once you have found a properly-qualified HDPD and become a member, you can then acquire an HSA health plan for you and your family. You can sign up for one at a bank, credit union, insurance company, or other approved company. Any employer offering a properly-qualified HDHP may set up HSA health plans for employees.
Even if you are unemployed you can begin or contribute to existing HSA health plans. You do not have to use earned income to contribute. Contributions can be made from personal savings, dividends income, unemployment payments or welfare benefits.
Families and individuals do not have to itemize deductions on their Federal income tax returns to benefit from HSA health plans.
Contributions to your HSA health plans can also be made by others, including relatives. However, you receive the benefit of the tax deduction from those contributions.
The funds in HSA health plans are pre-tax dollars if made by payroll deduction. This is by far the most common way for funds to be deposited into HSA health plans. If not made through payroll deduction, then contributions to HSA health plans are tax-deductible.
Another popular feature of HSA health plans is the policy of tax-free interest earned on the health savings account.
When funds are withdrawn to pay qualified medical expenses, these withdrawals are also tax-free.
With HSA health insurance, you don’t have to worry about any use it or lose it clause. Unused funds and interest are carried over from year to year, and there is no limit on the amount.
HSA health plans follow you from employer to employer. In these days of job instability, it is common for people to work for many employers in a lifetime. HSA health plans are yours and are available for you regardless of how many times you change jobs. You own the HSA account and it is yours to keep even when you retire.
Since you own the HSA, you make all the decisions over how the money is invested. You can also decide to never invest the funds at all. If you do decide to invest your HSA health plans funds, you are limited to the same types of investments permitted for IRAs, including stocks, bonds, mutual funds and certificates of deposit.
