If you have a business today or you’re thinking about starting up one in the future, you’re going to find that you’re going to need health insurance. Long gone are the days where you could just sign up with your employer’s plan. You’re a business owner now, so you have to do the health insurance shopping!
The great thing about health savings accounts is that you’re able to deduct all of your health insurance related expenses. If you really do a breakdown of your health insurance cost analysis, you’re going to find that it may be lucrative to purchase a high deductible plan and write off your expenses.
If you want to sign up for a HSA, there are a few rules that you should consider when thinking about signing up for one.
The contributions you make
As a business owner, you can contribute to both your account, as well as your employee’s accounts. If you make the contribution to your employer’s account, this is not taxable and will not be included with your employee’s income or wages. Subject to the rules, employees can make one time transfers from their IRA to a HSA. Every year, the contribution limits change, so be sure to know how much you can cap your account at.
As of 2009, you could contribute up to $3,000 as an individual. If you have a family or you’re over the age of 55, you could contribute an extra $1,000, bringing the total to $4,000.
Using your HSA for spending
When you’re ready to take money out of your account, they must be for medical expenses. As long as you make a medical contribution, you’re going to find that your purchases will be tax free. Over the counter medication, as well as doctor’s visits can all be written off. Be sure to save all receipts when making a payment.
I haven’t sign up yet, where can I go?
When I purchased my health insurance plan, I went to eHealthInsurance online. The thing I liked about them was that I could instantly get quotes from a ton of insurance agencies in my area. I could compare plan prices and didn’t have to deal with a pushy salesperson on the other end. I would highly consider this site when contemplating a sign up.
Health savings accounts are a great route to take when you want to save money with taxes, as well as find great insurance plans that you can tie your bank account to. There are a lot of them out there, so be sure to find what plan is right for you and your family.