The Breakdown On Health Saving Accounts ( hsa )

The Breakdown On Health Saving Accounts ( hsa )

Health Savings Accounts are an easy way of paying your out - of - pocket medical expenses, and may even save you money in the long run if you manage them to your advantage. California employee health insurance now includes the option of opening a Health Savings Account ( HSA ) at open enrollment time of your health care benefits with your gaffer.
An HSA plan consists of a high - deductible health plan and an HSA bank account ( much a checking account ) that is used to pay only medical expenses. Your contributions to the HSA account augment hobby and some banks offer built - in investment options coextensive as common funds or money market funds. Contributions made to your HSA over the year are tax deductable.
HSA plans can be set up for families as well as for individuals. The annual limit for family contributions in 2011 is $6150, and for individuals is $3050. If you are 55 or older, there is a one - time arrest - up contribution of $1000 you can make to your HSA. Many employers set up HSAs for their employees and pre - wad the HSA to make the offer more appealing. Employees take the HSA with them when they pocket money jobs, too. Once the account holder reaches age 65, funds from the HSA can be withdrawn as retirement income. The newest nickels in 2011 is the justice increase from 10 % to 20 % on taxable, non - medical expenses.
Sometimes it makes more sense to have a health insurance policy with a low - deductable, but sometimes it does not. Having an HSA gives you supplementary rope on how to appropriate your tax - deferred money benign medical expenses. If you have a low deductible, you also have high premiums, and if you ' re paying a high premium and bustle to the doctor only a few times a year, you may find your money better spent using an HSA. With an HSA, you can fix up to have a higher deductible, since you can payment the HSA as is essential to cover your medical expenses as they arise. So, instead of having to pay your high premium before your really need to use it, you can decided when and how much to chips your HSA.
For all your California health insurance quotes and questions, contact Brauer Insurance of San Jose, CA. Brauer helps businesses and individuals find the best health insurance options based on their specific needs.