If you’re not happy with Obama Care and are not keen on putting your health care decisions in the hands of a company that cares more about managing its profits than it does about your health, A HSA, Health Savings Account may be a good option for you.  The agents at David C. Cloud with their years of experience have compiled the newest updates and legislative action that effects health care and have put it together in a manner that explains all your options without the legal Mumble Jumble of the IRS.

There are primarily four types of Personalized Health Care Accounts.  They are commonly referred to by their initials such as HAS’s, FSA’s, MSA’s, and HRA’s.  We can consider these accounts to be various vehicles or tools to maximize our health care options and strengthen our tax advantage.  Below are the basic types of Health Savings Accounts:

• Health savings accounts (HAS’s).
• Health flexible spending arrangements  (FSAs).
  • Medical savings accounts: Archer MSAs and Medi-Care Advantage MSA’s.
  • Health reimbursement arrangements   (HRA’s)

Each of these accounts has a different set of rules and requirements along with different advantages and disadvantages.  We here at David Cloud and Associates,  highly encouraged you to  seek out professional advice when  deciding  which account is best suitable for you, as there are serious and potential tax disadvantages between each type of account.  Let’s start with the HSA, Health Savings Account.

An HSA is a pre tax account that you, the holder of the account, can contribution into.  A family member may also contribute to your account.   The amounts that you or your spouse, if filing a joint return are Tax Deductible.  Your employer may elect to make contributions to your HSA; however the amount that your employer contributes is not tax deductible on your return.  The money contributed from your employer is not considered income to you.  If a person other than a family member or individuals listed on your return contributes to your plan, there are different rules for them.  Distributions from a Health Savings Account that used to pay qualified medical expenses are not taxed or treated as personal income.

Here is some important legislature that applies to Health Savings Accounts.  Any medicine or drug will be a qualified medical expense only if the medicine or drug:

1.  Requires a prescription,

2.  Is available without a prescription (an over-the-counter medicine or drug) and you get a

Prescription for it

3.  Is insulin.

Some of the benefits of a HSA, Health Savings Account are that they allow you to claim a tax deduction for the amounts you or a family member contributed to your plan, even if you do not itemize your deductions on your tax return.  The contributions made into your HSA from your employer, including contributions that were made from a cafeteria plan in most circumstances are not treated as income to you. With an HSA, unlike some other plans, the contributions in your account are not subject to the “Use it or Lose It” clause and remain in your account year after year until you use them.  The earnings and profits made on these accounts are also tax free.

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David Cloud and Associates can guide you through this and help you establish the best account for you.  As you can see, there are many rules that apply to HSA’s, yet the benefits are great.   Stack the deck in your favor, take back a little control over your health and money and put it back where it belongs, in your hands.  Let David Cloud give you a voice and a choice in managing your family’s health care decisions.  This option allows you to keep the change in your pocket, where it belongs.