TMTW #102 – IRS Announces 2013 Inflation Adjusted Amounts for HSAs

Tax and Money Tip of the Week
IRS Annouces 2013 Inflation Adjusted Amounts for Health Savings Accounts
July 25th, 2012 | No. 102

The IRS has announced the new inflation adjusted amounts for Health Savings Accounts (HSAs). For calendar year 2013, the annual contribution limit for an individual with self-only coverage will be $3,250, up from $3,100 in 2012. The annual contribution limit for an individual with family coverage under a high deductible plan will be $6,450, which is an increase of $200 over the 2012 limit.
 
The annual deductible for self-only coverage for a high deductible health plan in 2013 can’t be less than $1,250 ($1,200 in 2012) and $2,500 for family coverage ($2,400 in 2012).
 
In 2013, the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) for self-only coverage can’t exceed $6,250 ($6,050 in 2012), or $12,500 for family coverage ($12,100 in 2012). 

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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What Does the Supreme Court Ruling on the Health Reform Law Mean for you?

Tax and Money Tip of the Week
What Does the Supreme Court Ruling on the Health-Care Reform Law Mean for You?
July 18th, 2012 | No. 101

On June 28, 2012, the U.S. Supreme Court ruled, in a landmark decision, that the Patient Protection and Affordable Care Act (ACA), including the provision that most Americans carry health insurance or pay a penalty, is constitutional.

The ACA, signed into law in 2010, made sweeping reforms to health-care coverage in the United States. Many provisions of the law have already taken effect. A number of other provisions are scheduled to take effect in subsequent years, including the requirement that most Americans and legal residents have qualifying health insurance (exceptions apply) or pay a penalty in the form of a tax. Here’s a summary of some of the important provisions that are already in place, and those that are on their way by 2014.

In effect now
 ·  Children can no longer be denied insurance coverage because of pre-existing conditions
 ·  Payment of $250 rebate to Medicare Part D beneficiaries subject to the coverage gap (beginning January 1, 2010) and gradually reducing the beneficiary coinsurance rate in the coverage gap from 100% to 25% by 2020
  · Insurers will not be able to impose lifetime caps on insurance coverage
  ·  All plans offering dependent coverage will be required to allow children to remain under their parents’ plan until age 26
  ·  Insurers cannot cancel or deny coverage if you are sick except in cases of fraud
  ·  Adults with pre-existing conditions will be able to buy coverage from temporary high-risk pools until 2014, when coverage cannot otherwise be denied for pre-existing conditions

Key provisions effective on or before January 1, 2014
  ·  Increasing the medical expense income tax deduction threshold to 10% of adjusted gross income, up from the current 7.5% (January 1, 2013)
  ·  Increasing the Medicare Part A tax rate by 0.9% on wages over $200,000 for individuals ($250,000 for married couples), and assessing a new 3.8% tax on some or all of the net investment income for these higher-income individuals (January 1, 2013)
  ·  All Americans must carry health insurance or face a penalty (in the form of a tax) of up to 2.5% of household income on individuals, with exceptions for economic hardship, religious beliefs, and other situations (January 1, 2014)
  ·  Adults with pre-existing conditions cannot be denied coverage or have their insurance cancelled due to pre-existing conditions (January 1, 2014)
  ·  A requirement that states establish an American Health Benefit Exchange that facilitates the purchase of qualified health plans and includes an Exchange for small businesses (January 1, 2014)
  ·  Tax credits will be available to qualifying families to offset the cost of health insurance premiums (January 1, 2014)
  ·  Employers with more than 50 employees must offer health insurance for their employees or be fined per employee (January 1, 2014)
  ·  Imposing taxes or fees on health insurance providers and drug companies, while doctors and hospitals will receive less compensation from government sources (January 1, 2014)

So is this it?
While the Supreme Court has ruled the ACA constitutional, it may still face challenges as Congress may seek to repeal the law. The ultimate fate of the health-care reform law may be determined by the outcome of the November elections.
 

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW #100 – Pros and Cons of Charitable Lead Trusts

Tax and Money Tip of the Week
Pros and Cons of Charitable Lead Trusts
July 11th, 2012 | No. 100

Pros and Cons of Charitable Lead Trusts

If you are looking to save estate taxes in certain situations, check this out:

Charitable Lead Trusts

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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Happy 4th of July Everyone!

Tax and Money Tip of the Week
Happy 4th of July!
July 4th, 2012 | 

Happy 4th of July everyone!

There will not be a Tax and Money Tip of the Week this week.  We would just like to take the time to wish everyone a safe and happy 4th of July!

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW # 99 – Pros and Cons of Charitable Remainder Trusts and Charitable Lead Trusts

Tax and Money Tip of the Week
Pros and Cons of Charitable Remainder Trusts and Charitable Lead Trusts
June 27th, 2012 | No. 99

Pros and Cons of Charitable Remainder Trusts and Charitable Lead Trusts

From Broadbridge, here is a great summary of CRTs and CLTs for clients considering charitable gifts and potentially saving estate taxes:

CRTs and CLTs

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW # 98 – Pros and Cons of Grantor Retained Annuity Trusts (GRATs)

Tax and Money Tip of the Week
Pros and Cons of Grantor Retained Annuity Trusts (GRATs)
June 20th, 2012 | No. 98

Pros and Cons of Grantor Retained Annuity Trusts (GRATs)

From Broadbridge, here is a great summary regarding GRATs:

Summary of GRATs

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW # 97 – Understanding Annuity Expenses

Tax and Money Tip of the Week
Understanding Annuity Expenses
June 13th, 2012 | No. 97

Understanding Annuity Expenses

Here is a great article on understanding expenses of annuities:

Annuity Expenses

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW # 96 – Explaining the Basics of Annuities

Tax and Money Tip of the Week
Explaining the Basics of Annuities
June 6th, 2012 | No. 96

Explaining the Basics of Annuities

Here is our introduction to the basics of annuities:

Annuities

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW # 95 – Long Term Care Insurance – “The Bottom Line”

Tax and Money Tip of the Week
Long Term Care Insurance – “The Bottom Line”
May 30th, 2012 | No. 95

Long Term Care Insurance

A catastrophic injury or debilitating disease that requires you to enter a nursing home can destroy your best-laid financial plans.  You will need to decide whether to take out a long-term care insurance policy that may cover nursing home care, home health care, adult day care, respite care, and residential care.  If you decide to purchase such a policy, you’ll need to choose the best time to do so. 

Typically, unless you have a chronic condition that makes you more likely to require long-term care, there is generally no reason to begin thinking about this issue before age 50.  Usually, there is no reason to purchase such a policy before age 60, but it is less expensive generally in your 50’s.

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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TMTW # 94 Laddering CDs – Reducing Interest Rate Risk and Spreading It Out

Tax and Money Tip of the Week
Laddering CDs – Reducing Interest Rate Risk and Spreading It Out
May 23rd, 2012 | No. 94

Laddering CDs – Reducing Interest Rate Risk and Spreading It Out

For how to ladder your CDs, see this link!

Laddering your CDs

Questions or Comments?

You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week.

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