If you are relatively healthy and self employed, then the HSA is the medical plan for you.
It combines a high deductible medical insurance plan with a savings account that offers tax benefits. When you go to the doctor (which is rarely since you are a healthy person), then you pay the brunt of the doctor bill. You save considerably on your monthly insurance premiums becuase of your high deductible.
Ideally you would put the savings from your lower insurance premiums into your Health Savings Account. This is just a cash savings account that has been designated for Health savings. It must be designated as a HSA when it is opened. Contributions to this account are tax deductible on the first page of your tax return, which is a good thing, just trust me. You can contribute as much as 3,000 if you are single and 5,950 if you are a family plan. Money in the account continues to be available (unlike a flex account at work) even if it is not used.
For more info on HSA's, here is a link.
Disclaimer
The content on this blog (www.acollinscpa.blogspot.com) is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. It should not be relied upon as specific tax advice for your personal situation. I strongly suggest that when it comes to filing your taxes, you get additional, professional guidance from individuals who are familiar with your specific circumstances. Those who choose to rely solely upon the information on this site do so at their own risk and peril, and cannot hold the author liable in any form or fashion.
IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
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