The Breakdown On Health Saving Accounts ( hsa )

The Breakdown On Health Saving Accounts ( hsa )

Health Savings Accounts are an easy way of paying your out - of - pocket medical expenses, and may even save you money in the long run if you manage them to your advantage. California employee health insurance now includes the option of opening a Health Savings Account ( HSA ) at open enrollment time of your health care benefits with your director.
An HSA plan consists of a high - deductible health plan and an HSA bank account ( ofttimes a checking account ) that is used to pay only medical expenses. Your contributions to the HSA account accrue relaxation and some banks offer built - in investment options equivalent as retaliated funds or money market funds. Contributions made to your HSA over the year are tax deductable.
HSA plans can be set up for families as well as for individuals. The annual limit for family contributions in 2011 is $6150, and for individuals is $3050. If you are 55 or older, there is a one - time grasp - up contribution of $1000 you can make to your HSA. Many employers set up HSAs for their employees and pre - dinero the HSA to make the offer more appealing. Employees take the HSA with them when they nickels jobs, too. Once the account holder reaches age 65, funds from the HSA can be withdrawn as retirement income. The newest pennies in 2011 is the decree increase from 10 % to 20 % on taxable, non - medical expenses.
Sometimes it makes more sense to have a health insurance policy with a low - deductable, but sometimes it does not. Having an HSA gives you also rampancy on how to forward your tax - deferred money worthy medical expenses. If you have a low deductible, you also have high premiums, and if you ' re paying a high premium and animation to the doctor only a few times a year, you may find your money better spent using an HSA. With an HSA, you can favor to have a higher deductible, through you can moolah the HSA as is imperative to cover your medical expenses as they arise. So, instead of having to pay your high premium before your really need to use it, you can decided when and how much to green your HSA.
For all your California health insurance quotes and questions, contact Brauer Insurance of San Jose, CA. Brauer helps businesses and individuals find the best health insurance options based on their specific needs.