Health
Savings Accounts in TexasA
Texas Health Savings Account (HSA) is a savings account (tax-favored) that allows
you to allocate funds to cover medical expenses, all the while being tax-deductible.
In order to receive the benefits of a Texas HSA, you must pair it up with an HSA
qualified insurance plan that is considered "high-deductible".
You can find these insurance plans in abundance through various insurance companies
throughout Texas. Simply run an instant
quote to see available plans in your area.
To be considered an HSA qualified Texas health insurance plan, the insurance plan generally has to have deductible amount between $1,200 - $6,050 for plans covering individuals, and between $2,400 - $12,100 for family plans. Once you have signed up for a qualified Texas HSA-compatible plan, you can start funding you Health Savings Account and receive the tax benefits. Here
is how a Health Savings Account works for you: - A Texas HSA allows you to avoid federal income taxes-up to $3,100 for individuals and up to $6,250 for family plans. There is no minimum deposit to be made
on your HSA. Anything that is deposited into your HSA, before the date of
April 15th, is considered an "above the line" deduction in taxes for
the previous fiscal year. You receive deductions for amounts placed into
your HSA, even when you choose not to take standard deductions, or don't itemize
the deductions. This tax benefit is available to everyone, regardless of
amount or the source of income.
- After you have
received tax-deductions from the placing of funds in your HSA account, you are
still eligible to spend the money, tax-free, on qualified medical expenses.
This includes any expenses from seeing a doctor, prescriptions drugs, or other
expenses geared towards your deductible. You may also withdraw money to
cover other expenses that would otherwise not be covered by a health insurance
policy. These expenses include:
- Dental costs:
generally, dental riders are very limited in coverage in most health insurance
plans, but in conjunction with the funds in your HSA account, you can use the
money to cover necessary dental procedures, including braces.
-
Mental therapy: HSA funds can be used to cover charges accrued through
psychiatrists, psychologists, psychoanalysts, psychotherapists.
-
Physical therapy
-
Alternative treatments: Texas Health Savings Accounts can cover
expenses accrued through the use of acupuncture, aromatherapy, homeopathy, traditional
Chinese medicine, nutrition consultation, and other healing services.
-
Transportation:
included expenses accrued while being moved or lodged related to health care.
-
Preventive health
- Prescription medication
in the list of what you can fund with an HSA. This year, you can't use an HSA for medicine not prescribed by a doctor. -
Special Disability fees: all costs accrued while accommodating handicapped
individuals for any sort of disability.
- Maternity
expenses
- Insurance
premiums:
costs that help pay for long-term care.
- You
can see a complete list of HSA
Qualified Expenses at HSA for America.
- In
order to receive a tax break for the current year, you must have a Texas
HSA-qualified insurance plan in place by the 1st of December.
- If the Texas
HSA-qualified health insurance plan is cancelled prior to one full year's coverage,
the amount of your maximum contribution is pro-rated depending on the number of
months you have had coverage.
- A one-time
roll over is allowed from an Individual Retirement Account (IRA), a Health Reimbursement
Arrangement (HRA), or a Flexible Spending Account (FSA) into your Health Savings
Account.
- In the event
that HSA contributions are made by an employer, it is considered "excluded"
from your income and, therefore, not subject to FICA or income taxes. This
kind of contribution reduces federal income tax dues for the fiscal year.
Health
Savings Account Information A
Texas Health Savings Account is the only fiscal investment that allows a
tax deduction as well as tax-deductible withdrawal. Health Savings Accounts
help you save on insurance premiums and income taxes because they are paired with
a high-deductible health insurance plan. Thus, your premiums are lower,
possibly saving you $5,000 a year when combined with your tax-free deductions. Health
Savings Accounts also appeal to Texas individuals and families concerned
with keeping themselves healthy. For instance, if you accrued no medical
expenses, the money in your HSA that is not used to pay medical expenses is yours
to keep and is free to mature without federal taxes. If funds are withdrawn
for medical expenses, they remain free from federal taxes, however, if at any
point money is withdrawn for something other than medical expenses before the
holder of the account is age 65, taxes will be levied on the amount withdrawn. What
makes an HSA so financially savvy is the investment opportunity it presents and
the potential return you can receive depending on interest rates and how much
of your deposit is used to pay medical bills. Health
Savings Accounts are a relatively new addition to the world of healthcare.
Here's how you, and the insurance business can benefit: -
It allows the consumer to decide how to spend their health care money as opposed
to letting insurance companies decide - putting both responsibility and choice
into the hands of consumers. People can seek out the best deals and values
for their medical expenses establishing an atmosphere of competition in a market
that has become counter to financial efficiency.
- It puts a
sense of pro-activity and responsibility into the consumer hands by giving direct
benefits to those that stay healthy - both by letting people keep money they don't
spend and also by allowing preventive care costs to be covered by Health Savings
Accounts.
- It gives freedom
to the consumer to seek out alternative methods of improving their health by allowing
them to spend money where they see fit. This inspires innovation on the
part of the insurance companies to provide their customers with more personalized
care that attends to the individual.
How
to Choose a Texas Health Savings Account In
order to choose the HSA and qualified health insurance plan that best fits you
individual situation, review the information posted on this page and feel free
to contact us for further information.
You can then run an instant
quote to find the available Texas HSA plans available in your area,
review the plan details, compare the plans, and apply online. Health
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Rick Santorum Goes After Mitt Romney on Health Care: 'He Should Not Be the Nominee'
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