Tired of high premiums? A high deductible plan may work for you.
When coupled with a health savings account, a high deductible plan helps you save premiums and taxes - very cost efficient!
We provide carrier-direct rates from top-rated insurers. It's easy. Enter your zip code to get started or for even faster service, call our client service department at the number listed above.
Current HSA Guidelines - 2011
Each year, the IRS establishes current guidelines for HSA-qualified policies. These numbers are subject to change from year to year due to inflationary factors. The guidelines listed below are for the current tax year. The IRS has indicated that the 2010 guidelines will remin in tact for 2011 (due to lack of inflation).
Permissible deductible sizes for HSA-qualified insurance policy:
Minimums and Maximums 2011
CAUTION: Not every policy with a high deductible is HSA-qualified--even if it appears to fall within the ranges outlined above. Most people who currently have a high deductible policy will need to apply for a new, properly-qualifed high deductible policy in order to be eligible to participate in an HSA plan. Typically, a high deductible policy underwritten by major insurers will clearly be labeled as HSA-qualified if it is properly qualified.
Because this is such a common question with our prospective clients, we have developed a special info page to help you determine whether your current "high deductible" policy is, in fact, HSA-qualified. Please click here to review that page (new browser will open). If you have any questions, please do not hesitate to contact our offices.
Maximum HSA Account Contribution Levels for 2011:
|For 2011 you can contribute up to|
Other info regarding contributions:
- •Maximum contributions can be reached regardless of deductible size (anything within acceptable ranges)
- •You are eligible for the maximum contribution in your first year, so long as your policy is effective by Dec. 1
- •You can make a one-time contribution from an IRA, HRA, or FSA account
- •Catch-up contributions: Individuals age 55+ are entitled to make additional "catch-up" contributions up to $1,000 per year
- •An employer may contribute to an employee's HSA account (pre-tax basis to employee, tax-deductible to employer)
Tax Treatment of Withdrawals--Overview:
Withdrawals are tax-free and penalty free if used to pay for:
- Qualified medical expenses (click link on right hand side to see complete list)
- COBRA premiums
- MEDICARE premiums (an excellent way to "disburse" your tax-free earnings)
- Health insurance premiums while receiving unemployment compensation
- Premiums for qualified long term care insurance
Withdrawals are subject to ordinary income tax and a 20% premature withdrawal penalty if:
- Made before age 65, AND
- Used to pay non-qualifying medical expenses
Withdrawals are not subject to a premature withdrawal penalty if made:
- After turning 65, or
- Due to death or disability (any age)