Released on = February 14, 2007, 3:46 pm

Press Release Author = JMP Financial Services

Industry = Small Business

Press Release Summary = Find out more about a new law that changed some of the rules
for health savings accounts and will let people roll over IRA money into an HSA. How
do the new rules work? Shared by your Colorado Health Insurance Agency JMP
Financial Services

Press Release Body = FOR IMMEDIATE RELEASE
2/16/2007

Will The New Contribution Laws for HSA\'s Cost You More Money?

Find out more about a new law that changed some of the rules for health savings
accounts and will let people roll over IRA money into an HSA. How do the new rules
work? How much money will your family save or have to spend? Shared by your
Colorado Health Insurance Agent- JMP Financial Services.

Fort Collins, Colorado- 2/16/2007 Find out whether the improvements to health
savings accounts really save your family money.
That new law, the \"Tax Relief and Health Care Act of 2006,\" was signed on December
20, 2006, and did make several improvements to health savings accounts.
As you mention, one of the new rules lets people roll over money from an IRA into an
HSA, so they can use the money tax free for medical expenses. But there are a lot of
limitations to this new rule.
You\'ll be able to make the rollover only once in your life, and the rollover amount
is limited to the HSA maximum contribution for the year, minus any contributions
you\'ve already made. If you have an individual plan, for example, you can contribute
only $2,850 to an HSA in 2007, which would also be the limit on the amount of money
you could transfer from an IRA to an HSA. If you\'ve already contributed $1,000 to
the HSA this year, then you can roll over only $1,850 from the IRA.
Because you can only make this rollover once in a lifetime, it\'s good to keep it in
mind as an option only in emergencies -- if, for example, it comes down to either
making the rollover or going into debt to pay your health-care expenses. And you
might have a tough time if you try to do this anytime soon. Regulations have yet to
come out, so administrators are still trying to figure out the procedures.
The new tax law did make some other changes to HSAs, however, that will make a
bigger difference to everyone. The most important: The maximum HSA contribution is
no longer based on the size of your health insurance deductible.
The entire article can be found here
www.kiplinger.com/columns/ask/archive/2007/q0118.htm
Jim Parker, president of JMP Financial Services, has been a specialist in the
Colorado health insurance market for more than 17 years. We offer many different
types of health insurance including PPO\'s, HSA\'s, and HMO\'s for both individuals and
small groups. We also offer several short term, international (whether traveling
outside the U.S. or coming to the U.S.) and travel plans. For more information, or
to receive a FREE online quote, go to www.jmpfinancial.com

For More Information Contact:

Jim Parker
jmpfinancial@comcast.net
(800) 683-8980
(970) 225-1752
http://www.jmpfinancial.com/about.html


Web Site = http://www.jmpfinancial.com/about.html

Contact Details = Jim Parker||633 Atwood Ct||Fort Collins ,
80525||$$country||||970-225-1752||jmpfinancial@comcast.net||http://www.jmpfinancial.com/about.html