Health Savings Accounts (HSAs) - More Tax Benefits Than Meets The Eye - Aaron Skloff, AIF, CFA, MBA - CEO Skloff Financial Group

Health Savings Accounts (HSAs) – More Tax Benefits Than Meets the Eye www.skloff.com

Health Savings Accounts (HSAs) Established as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, the HSA is a hybrid between health insurance and a retirement plan. The HSA was established so savings used for qualified medical expenses for yourself, or anyone you claim as a spouse or dependent would be free from taxes. Qualified medical expenses include: medical doctors, dental and optical care, chiropractic care, Long Term Care Insurance, and Medicare Part A or Part B and Medicare HMO insurance premiums. www.skloff.com

2011 HSAs Minimum and Maximum Limits www.skloff.com

HSAs’ Powerful Characteristics HSAs are similar to retirement accounts like IRAs, but better: Pre-tax money deposited each year into an HSA can be withdrawn at any time, penalty free and tax free to pay for qualified medical expenses. Withdrawals made for non-medical purposes will be taxed as normal income and are subject to a 10% penalty if done prior to age 65. HSA funds not used each year remain in the account, and earn interest, dividend and gains tax free to pay for qualified expenses in the future. Like an IRA, the account belongs to you, not your employer. But unlike an IRA, your employer CAN contribute to your HSA. www.skloff.com

HSAs’ Power Tax Benefits Summary Contributions by You into Your HSA are on a Pre Tax Basis Contributions by Your Employer into Your HSA are on a Pre Tax Basis Growth on Your Contributions and Your Employer’s Contributions are Tax Free Withdrawals from Your HSA for Qualified Expenses, such as Long Term Care Insurance, are Tax Free. www.skloff.com

HSA Tax Free Withdrawal Limits For Long Term Care Insurance 2010 HSAs Federal Tax Free Withdrawal Limits by Age (at end of Tax Year) 40 or Less $330 More than 40 but not more than 50 $620 More than 50 but not more than 60 $1,230 More than 60 but not more than 70 $3,290 More than 70 $4,110 www.skloff.com

Free Long Term Care Insurance Quotes www.skloff.com/services-ltci.htm www.skloff.com

Health Savings Accounts (HSAs) - More Tax Benefits Than Meets The Eye - Aaron Skloff, AIF, CFA, MBA - CEO Skloff Financial Group

by Aaron Skloff, AIF, CFA, MBA on Nov 02, 2010

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Health Savings Accounts (HSAs) - More Tax Benefits Than Meets The Eye - Aaron Skloff, AIF, CFA, MBA - CEO Skloff Financial Group — Presentation Transcript