Poster
02-23-2004, 12:29 PM
The point of creating Health Savings Accounts is to invest pre-tax dollars into a fund that can be used for your healthcare. The government is hoping the investment aspect of program will be an incentive for the self employed and employers to take part.
"You've basically got a high-deductible (health insurance) plan living right next to a savings plan that works like an IRA," said Arlyne Calabrese, an independent insurance agent in Scottsdale. "The purpose is to address the skyrocketing costs of health insurance."
“As with a traditional IRA or a 401(k) plan, contributions made by workers into the health accounts are tax deductible, and earnings grow tax-sheltered. No taxes apply if the money is used for qualified medical costs. Otherwise, ordinary income taxes apply on withdrawals, along with a 10 percent penalty for people under 65.”
To learn more go to: http://www.azcentral.com/business/articles/0223medaccounts23.html
"You've basically got a high-deductible (health insurance) plan living right next to a savings plan that works like an IRA," said Arlyne Calabrese, an independent insurance agent in Scottsdale. "The purpose is to address the skyrocketing costs of health insurance."
“As with a traditional IRA or a 401(k) plan, contributions made by workers into the health accounts are tax deductible, and earnings grow tax-sheltered. No taxes apply if the money is used for qualified medical costs. Otherwise, ordinary income taxes apply on withdrawals, along with a 10 percent penalty for people under 65.”
To learn more go to: http://www.azcentral.com/business/articles/0223medaccounts23.html