Health Savings Accounts
Home Up Business Telephone Excise Tax Credit Individual Telephone Excise Tax Credit §179 Deduction Health Savings Accounts 2005 Retirement Plan Limits §199 Manufacturer Kiddie Tax Alternative Minimum Tax Capital Gains and Qualified Divi ROTH Designated §401 §179 And SUV's 2005 Standard Deduction Optional Sales Tax Deduction Vehicle Donations

 

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Up
Business Telephone Excise Tax Credit
Individual Telephone Excise Tax Credit
§179 Deduction
Health Savings Accounts
2005 Retirement Plan Limits
§199 Manufacturer
Kiddie Tax
Alternative Minimum Tax
Capital Gains and Qualified Divi
ROTH Designated §401
§179 And SUV's
2005 Standard Deduction
Optional Sales Tax Deduction
Vehicle Donations

 

 

Health Savings Account

Eligible individuals are now allowed to deduct contributions to a Health Savings Account.  HSA's are accounts that are established to assist with the increasing costs of medical care.  Contributions are deductible, Income earned in the account is not taxable and distributions from such accounts for qualified medical expenses are excluded from the taxpayer's income.

Health savings accounts require that the taxpayer(s) be covered by a high-deductible health plan.  This plans and the deductible contribution are outlined as follows:

 
 

Annual deductible

Contribution Allowed

Self-only coverage $1,000 100% of deductible or $2,000
Family coverage $2,000 100% of deductible or $5,150

The various rules and affects of Heath Savings Accounts are quite extensive.  If you are considering establishing an HSA please contact our office for additional assistance.