Can you Fund your HSA from your IRA???

If you have an HSA (Health Savings Account), you know the great value is that you can use funds from the account Tax-Free to pay for medical expenses.  Unfortunately like most government created financial instruments, there is a limit on how munch you can contribute to the account each year.  But even with a contribution limit, Employee Benefit Research Institute (EBRI) reports that in 2017 only 13% of all HSA accounts were fully funded and 36% of HSA accounts were not funded at all. Typically, the reason accounts are not fully funded is the owner is either not educated on how the accounts work; or they do not have the cash flow/income to make the contribution. So, there is a strategy that most people do not know about, where you can take dollars from your IRA and move them to your HSA.  And most importantly you pay no tax or penalty to do this.  It is called a QHFD (Qualified ...

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Be Careful About The Rules Around Saving For Healthcare

With so many changes happening with our tax code every year, it is really important that you sit down and review how this will affect your family finances. As 2015, approaches us, one tax issue that could affect your family center around the changes intertwined with Flexible Spending Accounts (FSA’s) and Health Savings Accounts (HSA’s). In many prior years, traditionally FSA’s were you use it or you lose it plans if the money is not spend by year-end. Since 2013, you were allowed to roll money over from the prior year and carry it forward into the current. However, going into 2015 there is a BIG twist that you should consider before the 2014 year is over. If you elect to carry forward the $500 in your FSA plan from 2014 into 2015, you will immediately become ineligible to participate in a Health Savings Account for 2015. This is true for the entire calendar year. So, if you opted to ...

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