7000 Harps Mill Road,
HEALTH SAVINGS ACCOUNTS REDUX
Derek Carawan, AAMS
Most of us have either experienced the healthcare drama in this country directly or we know of someone who has. In two random surveys conducted by the Henry J. Kaiser Family Foundation from December 13th – 19th , 2016 and February 13th – 19th , 2017, the following data was collected:
A simple internet search will result in similar findings which confirm what many of us already know. This problem is not going away and we must come up with ways to address its impact on our lives. One of the solutions that is getting more and more attention is the HSA (Health Savings Account). I wrote about this in an article in April of 2016. With the state of healthcare today, I thought it worth addressing again. For those of us who have a high deductible health plan (HDHP) and want to find a more efficient way to put away money specifically to cover medical expenses, this may be part of the answer. It certainly isn’t a solution for everyone though. Here are some of the details of an HSA:
For more about HSAs and Medicare visit MedicareInteractive.org. Here is a comment from their site regarding not being allowed to contribute to an HSA once you are enrolled in Medicare, “If you enroll in Medicare Part A and/or B, you can no longer contribute pre-tax dollars to your HSA. This is because to contribute pre-tax dollars to an HSA you cannot have any health insurance other than a HDHP. The month your Medicare begins, your account overseer should switch the contributing balance to your HSA to zero dollars per month. However, you may continue to withdraw money from your HSA after you enroll in Medicare to help pay for medical expenses, such as deductibles, premiums, copayments, and coinsurances. If you use the account for qualified medical expenses, it will continue to be tax-free.”
You are only allowed one rollover per year. Please consult with your plan and/or tax professional regarding other details of HSA plans.
Derek Carawan is a LPL Financial Advisor and LPL Registered Principal with Carawan Financial Partners, Inc. / Securities offered through LPL Financial/ Member FINRA/SIPC and may be reached at, www.carawanfp.com, 919-870-8181 or firstname.lastname@example.org.
These views are those of the author and should not be construed as investment or tax advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing in mutual funds involves risk, including possible loss of principal.
Tracking #: 1-632442