TAILIEUCHUNG - Lecture Employee benefits and retirement planning - Chapter 47: Health savings account (Section 223 plan)

This chapter covers health savings accounts (HSAs). Although an HSA can be set up by an individual, focus is given to employer-sponsored plans. Advantages and disadvantages of HSAs are discussed, focusing on tax savings and flexibility issues. HSA eligibility requirements are covered next. | What is it? A plan that provides tax benefits for amounts accumulated to pay health care expenses Can be provided for employees by an employer or set up by individuals or organizations Copyright 2009, The National Underwriter Company Major features Annual individual or employer contributions to IRA- like plan to pay qualified medical expenses up to: $3,000 for individual (2009) $5,950 for family (2009) Copyright 2009, The National Underwriter Company Major features (cont’d) High deductible health plan: $1,150 individual deductible (2009) $2,300 family deductible (2009) Maximum annual out-of-pocket $ 5,600 for individual (2009) $11,200 for family (2009) Able to accumulate “savings” because amounts not used for medical expenses continue to grow tax-free Copyright 2009, The National Underwriter Company When is it Indicated? When desire way to save on insurance costs Can be used by self-employed and those not covered by employer plans as well as those who are Copyright 2009, The National Underwriter Company Advantages Offer tax-saving opportunities to eligible individuals Unused funds not forfeited at year-end; continue to grow tax-free inside HSA No requirement that HSA be used to pay medical expenses HSA not as flexible as IRA but qualified plan participant can contribute to HSA and not IRA regardless of income Copyright 2009, The National Underwriter Company Advantages Proponents of HSA people see cost of health care shop for best price Opponents of HSA without first dollar coverage, people will delay medical care until they need costly medical intervention Copyright 2009, The National Underwriter Company Disadvantages HSAs do not appear appropriate for tailored benefit plans nor are they likely to extend health coverage to people currently without coverage Lower income may see high deductibles as drastic cut in benefits Taxpayers in lower income brackets get less tax benefit than other taxpayers Structure may encourage adverse selection

• Quản trị kinh doanh
• Employee benefits
• Retirement planning
• Retirement plan design
• Employee’s retirement
• Health savings account
• High deductible health plan
• Employee benefit planning
• Individual benefits statement
• Employee discounts
• Company cafeterias
• Employee stock purchase plans
• Section 423 plans
• Key employee life insurance
• Corporate owned life insurance
• Simplified employee pension
• Salary reduction SEP
• Scheduled benefits
• Legal services plan
• Lecture Human resource management
• Human resource management
• Human resource
• Quản trị nhân sự
• Employee benefits programs
• Restricted stock plans
• Employee retention
• Strategic Benefits
• Development Benefits
• Financial Reporting
• Financial Management
• Human Resources
• Legal services plans
• Employer select
• Designing retirement plans
• Stock options
• Nonstatutory stock option
• Incentive stock options
• Alternative minimum tax
• Cafeteria plans
• IRC section 125
• Flexible spending accounts
• Medical reimbursement
• Group term life insurance
• Executive carve out
• Split dollar life insurance
• Endorsement method