The IRS Deductions Blog

Posts Tagged ‘account’

Question: Maximum HSA contribution for 8 months of coverage in 2010 ?

I paid monthly premiums on a high deductible HSA insurance plan until August of this year. Normally my maximum contribution would be $6150 for the entire year. Should I simply prorate the maximum amount I can contribute for 2010 based on 8 months of coverage ?

Answer: HSA contribution limits aren’t subject to pro-rating. Even if you establish an HSA for a partial year, you can still make up to the maximum contribution for the tax year. The 2010 annual contribution limits are $6,150 for family coverage. A catch-up contribution is available for taxpayers 55 and older of $1,000.

Items on Amazon Right Now for Hsa Deductible 2010:

Your Health Insurance Deductible – a High Deductible Health

Question: Can I contribute to an FSA through my employer if I’m covered by my husband’s HDHP insurance w/ HSA?

My daughter and I are covered by my husband’s health insurance through his employer. We have a High Deductible Health Insurance Plan and contribute to a Health Savings Account through my husband’s payroll deduction.

Through my employer, I have only elected to have Vision coverage. So, can I set up a Flexible Spending Account through my employer and contribute through my own payroll deduction? I’m asking b/c I would like to have an FSA to pay for my daughter’s daycare expenses so that I may take advantage of the tax benefits of doing so. Thanks!

Answer: This is a question that can only be answered by your HR dept. If they offer an FSA for childcare expenses and medical expenses, it does not matter that you only have vision.

Items on Amazon Right Now for Health Savings Account Deductible Expenses:

Health Savings Account Overview

Question: Can I get a health savings account to pay my out of pocket expenses for dental treatment?

Everything I have read says that I need to have a High Deductible Health Plan to be eligible. but I have a good health insurance plan that is not high deductible. Also I have a good dental plan, however my dental treatment (qualified under HSA) will cost me several thousand dollars over my coverage limit. Is there a way to get and use an HSA account to cover these expenses?
and if I am self employed or running a small business can I set up an FSA for myself?

Answer: No. You can check at work to see if your employer offers a tax deferred Health Spending Account. This type plan allows you to put aside cash to cover health expenses that are not covered by insurance. The advantage is the expenses are then tax free.

But you can not use an Health Savings Account if you have other insurance. It must be your only coverage.

Items on Amazon Right Now for High Deductible Health Plans Hsa:

PBAPresents – Understanding Employer Sponsored HSAs – Part 3

Question: Can I have a dependent care FSA for child care expenses & an HSA with a HDHP health insurance plan?

I know there are specific limitations regarding medical FSA’s and such but I wasn’t sure regarding dependent care. My wife and I have a High Deductible Health Plan and HSA through her work and we are having a child soon so we are considering the dependent care FSA through his work for upcoming day care expenses and such but we don’t want to get hit on taxes or do anything that would effect the medical side. Any accountants and tax professionals with advice? Thanks!

Answer: You can have both; the FSA will not affect the HSA. Here is the IRS publication for information on both plans: http://www.irs.gov/pub/irs-pdf/p969.pdf

Items on Amazon Right Now for Fsa Deductible Expenses:

Asparity Reports that 85,000 Federal Employees Made More Affordable Health Plan Choices during 2011 Federal Open Season

Asparity Decision Solutions, a leading provider of health care and employee benefits decision support and data solutions, reports that 85,000 federal employees used PlanSmartChoice during the 2011 federal open season to make more affordable health plan choices.

Flexible Spending Account and Dependent Care Assistance Program – Benefits for new employees Ch.9

Question: Affordable Health Insurance for small business owner?

I own a small retail store in CT and just received notice that my health insurance (for my family as well as my employees) went up by 23% (!). Now I’m trying to research online what the best options are in terms of affordability and coverage. I looked into HSA but am afraid that my employees might not be able to pay the high deductible out of pocket. I also wonder if getting individual health insurance (not via the business) would work if I pay a portion for each of my employees and if those tend to be less expensive. I pay 100% for my employees now and partly for their family members and would like to continue doing that but the prices are just getting ridiculous. If anyone has any suggestions I really appreciate it. Sadly, I am not internet savvy so shopping online has proven to be hard and insurance jargon just seems like a foreign language to me…
Thank you,

Answer: Individual health insurance plans in CT will be about half of the cost of a group plan with similar benefits.

What you want to do as an employer is to still offer health benefits to your employees (and receive the tax deduction for doing so) yet lower your premium costs (and your employees premiums costs) substantially.

What you will want to do is establish a medical reimbursement plan. This should allow you to accomplish your goals. Any CPA or qualified CT health insurance agent with some experience will be able to help you with this. Here is some more information on medical reimbursement plans and health insurance in Connecticut in general:

Items on Amazon Right Now for Hsa Family Deductible:

Experts offer tips on tackling health care costs

Your Career: It’s that dreaded time of year again. Employees are beginning to find out how much more they’ll be ponying up for health insurance in 2011, and costs are going up, again.

Health Savings Accounts: Part I, The Basics