Health savings accounts are great vehicles for accumulating funds for qualified health care expenditures on a pre-tax basis. Workers with high-deductible health insurance coverage and that have set up an HSA can contribute up to $3,050(individuals) and $6,150 (families) for the year 2010 by December 31, 2010. These IRA-like accounts were implemented in order that the individual would have control over their health care dollars and medical expenses. High deductible health insurance plans are defined as plans with a minimum annual deductible of at least $1,200 for individual coverage and $2,400 deductible for a family for 2010.
If Congress does not extend this tax-favored account, contributions to HSAs will be severely limited. Certain qualified medical expenditures from an HSA will be curtailed.
We recommend that clients should consider maximizing their contributions to HSA accounts for 2010 and encouraging their representative to extend HSAs into 2011 and beyond.
Call us if you have questions regarding HSAs and lets hope Congress extends HSAs….
Questions or Comments?
Mark Vitek, CPA/PFS, CFP®
…until next week.