There is no doubt that the HSA, or health savings account, is an increasingly popular vehicle for helping Americans take charge of their own health care choices. What is less clear is how to handle the presence of an HSA account in an individual’s savings and investment portfolio at tax time. If you participate in an employer-sponsored health savings account, your employer may view the HSA as a way to maximize your employee benefits while keeping costs lower. You may see the HSA as a way to safeguard yourself and your family against future health care or financial unknowns. But the Internal Revenue Service (IRS) also has its own view of HSAs. As a participant in a health savings account, it is important for you to understand how the IRS sees HSA accounts and how to handle these unique accounts for tax purposes.
How the IRS Defines the HSA
The IRS defines a health savings account as “a tax-exempt trust or custodial account that you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur.” You do not need to get any type of special approval or permission from the IRS to open an HSA. However, you must establish a relationship with a trustee — an individual whom the IRS has approved to oversee financial accounts. Since the HSA is fundamentally a financial savings and investment account, your trustee may be a bank, your employer, your insurer or another authorized agent. If you are participating in an employer-sponsored HSA plan, you can ask your employer for information on health savings accounts to find out who the trustee is.
Establishing IRS Eligibility to Participate in a HSA
In addition to forming a relationship with an IRS-approved trustee, you must establish that you are eligible to participate in a health savings account. It is also important to check for changing IRS regulations regarding HSAs from year to year.
- You are eligible if you are a participant in a high-deductible health insurance (HDHI) plan.
- You are eligible if you do not participate in any other type of health care plan that is not included in IRS-approved additional health care plans.
- You are eligible if you are not enrolled in Medicare.
- You are eligible if no one else can claim you as a dependent on their tax return.
Understanding the High-Deductible Health Insurance Plan
Unless you currently participate in a high-deductible health insurance plan, you may not be sure how to tell whether your health care plan qualifies. The IRS has strict regulations regarding what qualifies as a high-deductible health insurance plan.
- Whether you have an individual or a family policy, your deductible must be higher than that of the typical insurance plan.
- Your maximum annual expenses, including deductible and out-of-pocket medical expenses, must be capped at a certain level.
- Your plan may, but is not required to, cover preventative health care expenses.
HSA Contributions and Distributions
The IRS also has specific regulations regarding contributions to and distributions from an HSA.
- Cash only. All contributions to an HSA account — whether for an individual or family account — must be made with cash. No contributions coming from stocks, property or securities are permitted.
- Contribution limits. You must abide by all limits to monthly or annual contributions set up by your specific plan.
- Qualified medical expenses. Distributions must be taken for qualified medical expenses only. Insurance premiums (except for long-term care premiums or premiums paid during unemployment) and non-prescriptions drug expenses (except for insulin) cannot be considered qualified medical expenses, but expenses incurred before the start date of the HSA are.
- Tax free limitations. Distributions taken out of an HSA are tax free if they are used for medical expenses. Otherwise they are taxed and a 10 percent penalty is assessed if funds are withdrawn for non-medical purposes before age 65.
- Employer-sponsored HSA plans. If you leave your employer, you can roll over your HSA account into a new HSA account and it will not be counted as income.
Because understanding the complexities of IRS regulations is never the easiest of tasks, it is also advisable to contact a tax professional if you find you have more questions about HSAs and taxes.
About the Author: Wiley Long has been helping individuals and families get coverage and save money for over 20 years. He owns HSA for America.
For any professional in your employment they need to have a much greater standard of safety and care and these factors ought to be stuck to as company policy, so courts typically make it difficult on evidence of professional negligence. This really is typically to exchange lack of costs incurred to revive your company if you suffer from the client claim for compensation.
This can’t be predicted in advance because it is impossible to calculate when this kind of event can happen therefore the best factor would be to also have sufficient protection for just about any scenario and getting an intensive consider the market could be makes sense.
Legal consultation services are incorporated within the coverage in addition to court attendance costs. You’ll find a lot of info if you get professional indemnity insurance quote online.
The insurance provider will therefore need a thorough study of the character from the claim in the event you so require it so it is advisable to decide on a company that knows your needs. Make certain things are properly in position before carrying out to the organization you would like. Rates derive from an overall total estimate and all sorts of costs are only able to be considered by an insurance provider that knows the professional indemnity marketplace.
Ultimately, insurance brokers themselves call for a tremendous amount of indemnity cover to cancel out the chance they are legally challenged for nearly the advisory services.
Actually you might save a lot of time speaking to some salesman together with your questions and arrive at the important stuff rapidly. It’s also reassuring to understand you might get covered while on the telephone particularly if you have a very good deal. Don’t delay as this may be unhelpful, and get indemnity insurance quote online it could save you an awful lot of money.
Many retirement and investment plans include a variable annuity, and you may be unfamiliar with what that is. It is smart to educate yourself on some of the basics before enrolling. Here is a quick guide to a few things you will want to know about variable annuities:
1. What is it?
In simple terms, it is a contract between you and your insurance company. You purchase the initial contract by either making a large lump sum payment or either through a series of smaller payments and the insurance company agrees to make payments to you periodically, either beginning right away or in a future date.
Variable annuities offer the purchaser different investment options, typically mutual funds. There are some differences though between a typical mutual fund and variable annuities, including that you receive periodic payments with a variable annuity, death benefits as well as tax deferment options.
2. How do they work?
There are two phases for variable annuities, including an accumulation phase where you complete purchase payments and choose to allocate to different investments. The payout phase is where you receive your purchase payments and any additional investment gains either as a lump sum payment or through a periodic payment plan.
3. Ask a lot of questions
Variable annuities may be a completely new or foreign topic to you so when you meet with a professional remember to ask a lot of questions to help your understanding. Financial experts have a responsibility to accurately advise you on your financial options and to make sure the products they are selling are suitable to your needs. Make sure you provide them with as much information as possible so they can make an informed recommendation.
Before you purchase a variable annuity, try to learn as much as you possibly can about them. Do your own research or talk to a financial professional about how they work, the different benefits they can offer and any associated charges you will be responsible for paying.
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Admiral Yacht Insurance was founded in 1992, as a personal response by managing director Robert Holbrook to the need for a flexible insurance service for cruising sailors and others. It now specialises in insuring large motor and sailing yachts. The company covers a wide range of geographic areas, from northern Europe to Mediterranean, from south east Asia to the Caribbean. It also extends its cover to blue water cruisers, making long voyages.
The Admiral Yacht Insurance company also enjoys a long-standing association with the Atlantic Rally for Cruisers, also known as the ARC. This has helped boost the company’s specialist knowledge, meaning that they can provide expertise when it comes to long-distance cruising, and the issues which affect sailors. This is indeed a distinctive and useful product, baked up by the personal touch.
Admiral also prides itself on the speed and efficiency with which it deals with customer claims. Applications for cover can be dealt with either online or over the phone, adding convenience and flexibility to the service on offer. Indeed, nine out of ten claims, on average, are settled with no need to consult the company’s underwriters. For speedy, efficient and knowledgeable service, there are few better companies to choose than Admiral.
Business owners usually care about their business but not all of them care about the good heath of their worker, or to promote good health habits among them. The workforce is the fuel that powers your business, so besides getting liability insurance in general to protect your company from potential operational risks, you should also think of promoting good health at work to stay safe from employee’s claims.
Different Types of Insurance
You may know that general liability insurance is the coverage that protects your business from a series of liability circumstances that may include negligence, ownership damage, bodily injury and other contracting, manufacturing, and overall operation of your business. As a business owner, this coverage protects your company against possible claims and legal actions including lawsuits coming from people outside the business, but not from claims coming from workers. You should also know that you could get other types of insurance including professional liability insurance, automobile liability insurance, and workers compensation insurance that protects your employees from accidents and other events in which your company may be legally liable.
Preventing Is Better Than Cure
As in medicine, avoiding risks at work can reduce the risk of potential accidents and reduce premiums that you have to pay for insurance. A safe installation of all machinery and everything else required to operate your business can certainly benefit your company. However, keep in mind that many times you also have to provide your employees with health care insurance, which involves additional costs that could be reduced by promoting good health at work.
Implementing Good Health Programs
Actually, many companies have health programs that encourage workers to enroll in exercising routines, change of eating habits to reduce fats, salt and other harmful groceries that far from improve an employee’s good health, while making them feel exhausted inside and outside of business hours. Certainly a well-balanced diet and a workout routine can boost anyone’s energy, but only with periodic talks about health improvement, banners promoting good health habits and other promotional material in strategic work areas can your workers learn how important good health at work really is.
Getting Professional Help Is Never Too Much
Whether you need advice to get general liability insurance, workers compensation insurance or a health improvement program, a professional advisor can help you to take the necessary prevention measures and promote good health habits among your workers to make your business run like clockwork.
With the frequency of domestic and overseas travel both increasing with every passage of the day, one cannot really deny the importance of getting a comprehensive travel insurance plan. As such, if you are within New Zealand, you should try and get travel insurance nz if you are a frequent traveler today. As you continue aging, medical issues that you never knew of before start to crop up. Even a healthy individual might be a victim of an emergency.
Such an occurrence can lead to many problems, especially when you are travelling to a foreign land. No wonder travel insurance NZ plans and other insurance plans in other parts of the world are in great demand in the modern day. Here are some of the reasons why you should buy travel insurance today:
When you have a travel insurance plan that can take care of any kind of issues that might come up when you are on your trip, you can rest easy and enjoy your journey. You can go on and see places, meet people and fill up your leisure moments with pretty much thrilling activities. Simply stated, your insurance plan helps to take care of the unforeseen.
In most instances, travel insurance is intended for purposes of taking care of emergency situations. It does not matter whether these emergencies are related to your general health or any other aspects. As such, your insurer can still take care of other travel issues you might have and not just limited to medical issues.
Last but not least, when you are insured, you won’t have to break the bank in order to pay for your medical bills in that foreign country. The insurance company takes care of it all.
A vacation well-earned is coming up. You have your heart set on getting to the beaches of Costa Rica, thousands of miles from your home. You picture yourself walking barefooted on the clean white sand with a thirst-quenching drink on hand; snorkeling, swimming, and surfing, what a dream vacation indeed.
However, there’s always the unexpected. No matter how careful or well-planned we are, there are always the unforeseen events.
Unfortunately, only a small percentage of those who travel, purchase travel insurance. Whether it is the lack of knowledge on what it can do for you or you are simply not interested.
Great travel insurance should be a part of your travel plan.
Finding a travel insurance company is not hard to do. However, finding one that covers all the unfortunate incidents can present a problem. Travel insurance nz, covers your medical expenses, travel delays, return flight trips, loss of pay, out of pocket travel expenses and more. The plan offers 24 hours worldwide emergency assistance, plus more ways to get the answers you need. A perfect vacation is what we all strive for.
If the unexpected occurs, a claim is just a 3-step process. The best travel insurance nz has you covered. With travel insurance nz on your side, you can and will have a relaxed and at eased trip. For more information, have a look at the best travel insurance nz.
We are all looking for cheap car insurance, and most of us are willing to do what we can to get it. If your auto insurance company wants to offer you a discount based upon your driving habits, you should understand the implications before you agree to the program.
The relatively new program that your auto insurance company is probably talking about is the installation of an electronic monitoring device inside of your vehicle. A small, data-gathering device is attached to your car and has the capability of recording a wide array of information.
While your car insurance company may not track everything that you do while driving your car, the potential is there for the device to become somewhat invasive. While this device can help you get cheap insurance, it can also act against you if you are a bad driver.
Your Car Insurance Company’s Point of View
No matter what company you decide to buy your auto insurance from, your rates are determined by the amount of risk you present. What is the likelihood that the model car you drive will get stolen? How much will it cost to repair after an accident? Are you a safe driver?
All of the answers to those questions and hundreds more, rely upon some form of data. Your auto insurance company now has an additional tool to gather more data. They are happy to use it as often as possible so they can find the drivers who will be less likely to file a claim.
Your Point of View
While you might think that being monitored is an invasion of your privacy, you might overlook that inconvenience if it means getting a cheap car insurance policy. Younger people might be more comfortable with this type of technology because they are already sharing they are already used to sharing their personal life with strangers on Facebook and Twitter.
If you are a person who grew up without cell phones and digital books, you might scoff at the idea of “Big Brother” watching you anytime you decide to get in your car and drive.
The Positives of Using a Monitoring Device
Car insurance statistics show that when people know they are being watched or monitored, they make a greater effort to pay attention to their driving and are safer drivers.
Getting cheap car insurance, often a several hundred dollar discount off of your full premium, is great for consumers.
This device can help you modify your driving habits and help you drive more safely and even save gas and wear and tear on your car.
The Negatives of Using a Monitoring Device
Hard braking does not necessarily mean you are driving too fast or are an unsafe driver. You may need to do so to avoid an accident. Why should that count against you?
You might become paranoid and suddenly find that driving is a stressful job just because you fear that one wrong move could send your insurance rates skyrocketing.
On balance, this technology is more negative than positive. Does the data that is collected really save you money, or is it just an excuse for weeding out the good drivers from the bad? Is your car insurance company really trying to make the roads safer, or just coming up with a way to drop bad drivers and pick safe drivers who will be better for their bottom line profits.
This article was written by Steve Whiley, a writer in the auto insurance industry who is currently writing for American Auto Insurance.