| Health
Savings Accounts were created through the Medicare Act Congress
passed in 2003. Starting January 1, 2004 anyone with a qualifying
High Deductible Health insurance Plan
(HDHP) can set up one of these new accounts. The accounts
work similar to an IRA. Money is put into the Health Savings Account
through a trustee such as a bank. Better than an IRA, the
money can be taken out tax free to pay for medical expenses at
any time.
For 2005
the maximum deductible for and individual is $2,650 and for a
family the maximum deductible is $5,250. Of
course these are the maximum amounts that can be contributed to
the HSA.
The money in the HSA belongs to the owner and when the owner loses
or switches jobs or insurance plans the savings account stays
with the owner.
For more
information go to:
Managing
your HSA
Eligible
HDHP's
Why
were HSAs created?
Who qualifies
for an HSA?
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