HEALTH SAVINGS ACCOUNT with a HIGH DEDUCTIBLE HEALTH PLAN
This can be a good choice for self-employed and 1099 income individuals.
Once we have purchased a qualified Major Medical Plan with a HighDeductible…the IRS then allows us to open a HealthSavingsAccount at a local bank of our choice. Home Federal for example. Each year, we can deposit untaxed dollars into the account…up to our deductible amount, but not to exceed IRS Guidelines.
HSA IRS Tax Code IRS.gov
The money rolls over each year and accumulates. Unlike the FSA that you may be familiar with at work that is “use it or lose”.
This money will remain untaxed as long as it is spent on qualified medical expenses. Please see your tax professional to claim deductions.
For assistance in choosing a qualified Major Medical Plan please Contact Me.