- 9,744
HSA is until you reach your deductible limit which in my case is $5,000 they don't pay anything.
Many companies offer preventive benefits in front of the deductible.
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
HSA is until you reach your deductible limit which in my case is $5,000 they don't pay anything.
I dunno guys... I would try to make sure in my presentation that the client (prospect) keeps the distinction between the health insurance (the HDHP) and the tax advantaged savings plan (HSA) separate. Telling them the HSA "gives them a PPO discount that goes against their deductible" is mixing the setup.
I also would make sure they understand that the HSA is one half the setup: the SAVINGS portion. It is the ONLY triple tax advantaged savings plan allowed by the IRS and doubles as a source of funding for medical and retirement SAVINGS. 1) money put in is tax exempt 2) interest earned is tax exempt 3) money taken out for tax-qualified medical expenses is tax exempt. The other half is the HEALTH PLAN, and must have a High Deductible. This allows very low premiums, which is the main point. This is where they save on health insurance costs.
Excellent post. A couple of suggestions on semantics though...
High deductibles? I don't think $1,100 for a single, and $2,200 for a family (minimums for '08) are considered "high" by today's standards.
"Tax-exempt" is not the correct terminology.
Deposits are "tax-deductible".
Earnings are "tax-deferred".
Qualified withdrawals are "tax-free".
It is true that perhaps $1,100 deductible (the minimum required by the regulation) is not "high" relative to the market. However, it is "High" under the IRS rule.
Many companies offer preventive benefits in front of the deductible.
Is there an HSA out there actually crediting a lot of interest? My HSA is through World, I really didnt shop around, just wrote myself up on it, but now I am looking around any my big thing is that I want my money to gain some interest that I can use Tax exempt on qualified medical expenses...
Im in good health, and have been maxing out (if you will) my HSA for a couple of years now in hopes of gaining intrest. Im getting more intrest in my checking account.
any Ideas?