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What is an HSA (Health Savings Account)?
By Doug Lewin



Nothing is more frustrating than paying insurance premiums year after year, with no chance of ever getting money back. Wouldn't it be nice if there was a way we could "free up" some of that money and let it work for us? I'd like to introduce you to the concept of an HSA...Health Savings Account. Back in December of 2003, these tax-favored plans were signed into law by the President. Since then, the popularity of these accounts have grown like wildfire!! It's not too difficult to get Americans warmed up to idea of a tax-free vehicle. Simply take the money you are spending now on insurance premium, put a portion towards a qualified plan, with the remainder going into a tax-favored savings account.This money can be withdrawn TAX FREE for medical expenses or saved where it can grow tax deferrred. Besides having a major medical plan "in place" for you and your family, there are 3 significant tax benefits associated with an HSA: 1. Contributions to the HSA are 100% tax deductible. 2. Withdrawals to pay qualified medical expenses are NEVER taxed. 3. Interest earnings accumulate tax-deferrred and if used to pay qualified medical expenses are NEVER taxed. Those reasons right there are enough for me. So, why are H.S.A's a better solution? Well, they typically cost less. HSA's make quality coverage simple. Savings in the account are tax-free. A questions I get quite often is "Doug, how does this plan work when my family goes to the doctor?" First, you don't pay at the doctor's office. Your bill is re-negotiated , then you only pay the insurance company rate. To pay the bill, just make a tax-free withdrawal to cover the expenses. These plans make so much sense, it's unreal. These tax-favored plans are a huge part of my business. Since I work with small business owners, and they typically pay more in taxes than anyone else in the country (don't get me started on that one), these plans can't be beat. To learn more, get in contact with me and we can discuss whether an HSA is right for you.


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About the Author

Doug Lewin, Lewin Insurance Advisors
4651 Salisbury Rd
Jacksonville, FL 32256
904-376-7379

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