Released on: June 18, 2008, 3:43 am

Press Release Author: mattsinsurance4ca.com

Industry: Small Business

Press Release Summary: Health Savings Accounts (HSAs) came into effect in 2003. Many
people are not as informed as they should be about what Health Savings Accounts are
and how they work.

Press Release Body:
The key idea behind the Medicare Prescription Drug, Improvement and Modernization
Act is to help Americans under the age of 65 save for qualified medical and retiree
health expenses on a tax-advantaged basis. The further bonus is premium savings and
reduced taxes. The premiums for HSAs are lower compared to co-pay and low-deductible
insurance plans.

Typical tax advantages for HSAs are widespread. The deposits are untaxed, so there
is no \"use it or lose it\" provision. Also, any earnings on money in the account
aren\'t taxed, which is a significant advantage over many other retirement investment
vehicles. Finally, withdrawal of funds for qualified health expenses is also
tax-free.

Of course, HSAs are attractive for more than simple tax considerations. This kind
of account is also very portable, belonging to the contributor while employed and
going with them as they move from job to job or into retirement. Any adult covered
by a high-deductible health plan with no other first-dollar coverage is eligible to
set up a Health Savings Account.

There are three ways one can contribute to these plans. First, a person or family
may make tax-deductible contributions to the plan, without being required to itemize
deductions. Second, a person\'s employer may make non-taxable contributions to the
employee\'s account, or employers with cafeteria plans may allow workers to
contribute untaxed salary through a reduction in salary.

Finally, individuals who are 55 years of age and older may make catch-up
contributions to their account. If a person decides to enroll in Medicare, they
aren\'t qualified to add funds to their account. Funds in the account grow tax-free
through investment earnings, not unlike an IRA.

Monies paid out of the HSAs aren\'t taxed if they\'re used to pay for qualified
medical expenses, and in addition, monies still in the fund at the end of the year
stay in the fund. They are not forfeited.

These HSAs are so flexible that many people are discovering how handy these accounts
can be in times of trouble. HSAs are the perfect answer for people who don\'t have
health insurance and need it. Talk to a qualified health insurance broker to
understand the ins and outs of these accounts, and to understand what is classified
as a qualified medical expense.


To learn more please visit: http://www.mattsinsurance4ca.com


Web Site: http://www.mattsinsurance4ca.com

Contact Details: Adviatech Corp., PR for mattsinsurance4ca.com
9280 Bay Plaza Blvd Suite 706
Tampa, FL 33619
1.813.600.3017