Archive for September, 2009
9/4/09 QUOTE – “The test of courage comes when we are in the minority. The test of tolerance comes when we are in the majority.” -Ralph W. Sockman
by P. Lewis RobinsonSep
8
9/4/09 – All You Need to Know About HSA’s
by P. Lewis RobinsonSep
8
What is an HSA? HSA stands for “health savings account” and it is an easy way to save money for your family’s healthcare expenses. The account is typically setup through your bank or insurance company, and contributions must be made in cash or through an employer cafeteria plan.
Who qualifies? Anyone under the age of 65 who meets the following criteria:
Who qualifies? Anyone under the age of 65 who meets the following criteria:
-
Covered by an HSA-High Deductible Health Plan (HDHP)
-
Cannot be claimed as a dependent by another person
-
Is not covered by any other non-HDHP insurance plan
-
Cannot be enrolled in Medicare
What is a High Deductible Health Plan? For 2009, the IRS states that a HDHP is an insurance plan that has a minimum deductible of $1,150 for self-only coverage or $2,300 for family coverage. The plan must limit out-of-pocket expenses to $5,800 for self-only coverage and $11,600 for family coverage.
How much can I contribute to my HSA in 2009? If you’re under the age of 55, you can contribute up to $3,000 for self-coverage or $5,950 for family coverage. If you’re 55 or older, you can contribute up to $4,000 for self-coverage or $6,950 for family coverage. If two married individuals are 55 or older during the tax year with separate HSAs, the contribution limit increases to $7,950. Excess contributions are not deductible and may be subject to other penalties.
What is a qualified distribution? All distributions are strictly for qualified medical expenses. (For more information on qualified medical expenses, see our May 4, 2009 blog entry.) Distributions used for anything other than qualified medical expenses are subject to a 10% penalty.
What is the advantage of an HSA? The contributions to your account are excluded from your gross income, which helps to lower your taxable income.
Please contact our office if you have any additional questions on HSAs.
How much can I contribute to my HSA in 2009? If you’re under the age of 55, you can contribute up to $3,000 for self-coverage or $5,950 for family coverage. If you’re 55 or older, you can contribute up to $4,000 for self-coverage or $6,950 for family coverage. If two married individuals are 55 or older during the tax year with separate HSAs, the contribution limit increases to $7,950. Excess contributions are not deductible and may be subject to other penalties.
What is a qualified distribution? All distributions are strictly for qualified medical expenses. (For more information on qualified medical expenses, see our May 4, 2009 blog entry.) Distributions used for anything other than qualified medical expenses are subject to a 10% penalty.
What is the advantage of an HSA? The contributions to your account are excluded from your gross income, which helps to lower your taxable income.
Please contact our office if you have any additional questions on HSAs.
9/4/09 QUOTE – “If more of us valued food and cheer and song above hoarded gold, it would be a merrier world.” -J.R.R. Tolkien, British scholar & fantasy novelist
by P. Lewis RobinsonSep
4
9/2/09 QUOTE – “I long to accomplish a great and noble task, but it is my chief duty to accomplish small tasks as if they were great and noble.” -Helen Keller
by P. Lewis RobinsonSep
3
8/31/09 – Computer As Education Expense Covered Under 529 Plan
by P. Lewis RobinsonSep
1
Did you know that in 2009 and 2010 the IRS is allowing computer-related items as qualified expenses under a 529 Plan? Typically a 529 Plan was only used to pay for a college student’s tuition and books. Now a student that is enrolled in an eligible educational institution can claim internet access, educational software, and other computer-related technology as qualified educational expenses.
