Editor’s Picks August 6, 2009
Fast Facts from the IRS.
We are often asked the question, “How soon can I open my HSA account?”
We recently verified with a Treasury Department official that an HSA can be established as early as the effective date of the qualified-HDHP coverage. However, if the coverage begins on any day other than the first day of the month, the account cannot be established until the first day of the following month. In other words, if coverage begins August 15th the employee would need to wait until September 1st to open their account.
It should be noted, however, that even though the employee would have to wait until September 1st in our example, on September 1st, under full contribution rule, they could contribute amount for entire year if they so desire.
First Horizon does not offer tax or legal advice. You are advised to consult your personal tax advisor.
Comparing the Three Main Health Reform Bills.
healthleadersmedia.com,
Here’s a quick look at the three plans now getting the most attention. Keep in mind that there are a lot of moving parts in these plans, and the details can fluctuate dramatically from day to day.
(Read More)
Congress Mulls Tax On ‘Gold Plated’ Health Plans.
tax-news.com, August 4, 2009
Capping this exclusion was one of many policy options explored by the Senate Finance Committee in health reform deliberations earlier this year. Other options included restricting tax-free contributions to Health Savings Accounts and Flexible Savings Accounts, clarifying what constitutes a medical expense for tax deduction purposes and eliminating the itemized deduction for medical expenses. (Read More)
Employers Are Facing Big Changes with Health Care Reform.
kiplinger.com,
Tax advantaged accounts such as flexible spending accounts, health savings accounts and health reimbursement arrangements could no longer be used to pay for over-the-counter medical purchases.
(Read More)