SMB Now - Small & Medium Business Magazine
Tech Travel Agent, your one point of contact. Follow SMBNow on
These Social Networks
Follow SMBNow on LinkedInFollow us on Google+Follow us on Twitter
      Wednesday, December 13, 2017

 Subscribe in a reader
 



Editor Login

SMBnow.com / SMB Human Resources / SMB - Health Savings Accounts - What You Should Know
Friday, October 26, 2007
186 Update by Andy Wendt, Editor
Leave a Comment

SMB - Health Savings Accounts - What You Should Know


Health Savings Account For SMBIf you are thinking about an HSA here are some things that you should know:

You need a high-deductible health plan (HDHP) in order to qualify for an HSA and you can not be over 65 years old or have any other medical coverage other than you HDHP. A health plan is considered an HDHP (for individuals) when your annual deductible is at least $1,100 and annual out-of-pocket expenses don't exceed $5,600. For families your annual deductible must be at least $2,200 and annual out-of-pocket expenses don't exceed $11,200.

An HSA is not the same as an FSA or a HRA. While these plans are similar they are not the same. An FSA is a Flexible Savings Account and they are a lot like an HSA with one exception, they ARE a 'use it or lose it' plan. What you don't use by the end of the year you forfeit. An HRA is a Health Reimbursement Account and they are only funded by the employer. Also you will forfeit the balance in your HRA if you change jobs or health insurance companies. With an HSA you are in control of your money, even if you change employers or providers.

When you have money built up in your HSA you can use it to pay for qualified medical expenses without any tax consequences. You can also use the funds in your HSA to pay for other medical expenses that don't count toward your deductible such as over-the-counter meds.

An HSA can be looked at kind of like a 401k as you can make a payroll-deduction contribution to you HSA before taxes. If you are not going through an employer you can make contributions and then deduct them from your taxes.

Once your 65 years old, the money is available to you for anything, including non-qualified expenses. You will still pay income taxes on the unqualified expenses but there is no penalty.

For more HSA information check out this HSA Brochure from the Treasury Department.


SMB News Archive
   
  FREE SMB News Release
  Apply for the Rentacomputer CARES Scholarship
 

Computer and AV Rentals Nationwide

 

Security Cameras
Camera Security and Surveillance

   
 

Computer Service and Networking Nationwide
Computer Service Now

   
 

Laptop Rentals
Laptop/Notebook Rentals

   
 

Projector Rentals Nationwide
LCD Projector Rentals

 
 

 


 
If you have an SMB targeted company, please send SMB news story ideas to:
 
 
Visit other Xponex Web and Media News Publications
Main Street Monroe    Middletown USA


Copyright ©2017 SMBNow.com    Privacy Statement