|
“We thought that retirement meant having to
compromise on our health care – or our finances. Our HSAs
gives us peace of mind on both fronts.”
Jim and Trish P., Miami, FL
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TAKING CHARGE
WHEN YOU’RE IN CHARGE:
HSAs FOR THE SELF-EMPLOYED
If
you’re self-employed, tax-free HSAs could be a smart choice. You
are eligible to open these health savings accounts if you are covered by a high
deductible health insurance plan that has an annual deductible of at
least $1,200 in 2010 for individual coverage. If you already have medical
savings accounts (MSAs), you can roll the amounts over into a new HSA.
Your contributions to HSAs are deductible, even if you don’t itemize.
Here’s how HSAs can benefit you:
- Reduce your monthly premiums;
- Grow your account until retirement—like
an IRA account;
- Choose your own doctors and hospitals—there
are no network restrictions;
- Pay your medical expenses with pre-tax dollars.
The following chart demonstrates how an HSA could benefit you:
HSA Comparison Table - Individual Coverage 2010
| |
Typical
Plan
|
|
HSA
Plan |
| |
single
deductible:
$2,500
Coinsurance: 80%/20%
(doctor office co-pay) |
|
single
deductible:
$1,750
Coinsurance: 100% |
| Premium
paid |
$1,824 |
|
$2,106 |
| Share
of medical care expenses ($1,500 claim) |
+
$6,050
$2,500 for deductible,
$3,000 for coinsurance,
$550 for dental/eyewear |
|
+
$2,300
$1,750 for deductible,
$550 for dental/eyewear
All paid from HSA account |
| Expenses
subtotal |
=
$7,874 |
|
=
$4,406 |
| Tax
savings on HSA deposits |
$0 |
|
-
$840 ($3,000 HSA deposit x 28%) |
| Net
expenses |
$7,874 |
|
$3,566 |
Total
net savings with HSA Plan |
=
$4,308 |
This chart is for comparison purposes
only.
|
