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Saving $ on Health Insurance?
Health Insurance costs are rising. One way to reduce health insurance premiums is to enroll in a high deductible health insurance plan and to pair that plan with a (tax deductible) Health Savings Account.
For 2019 A high deductible health insurance plan has deductible of at least $1,400 (for individual coverage) or $2,750 (for family coverage). The covered person or family (“insured”) then contributes money to a Health Savings Account to cover medical expenses until the annual plan deductible is met.
The Health Saving Account (HSA) contribution is tax deductible. The account earns tax free interest. Unused contributions can be carried from year to year. Distributions are tax and penalty free if used for medical expenses only.
2019 contribution limits are $3,500 for individuals under age 55, and $7,000 for family, under age 55. Those over age 55 can add a $1,000 to those limits ($4,500 & $8,000 respectively).
No contributions are allowed after Medicare coverage starts. However, the insured can still use the account for medical expenses.
The Benefit? Savings on health insurance premiums and on taxes too.
For more information see IRS Form 8889 and Instructions or IRS Publication 969