Medical Savings Account

What are

MEDICAL SAVINGS ACCOUNTS

See .....Detail Summary Information
                        List of the Eligible Expenses
                                         Deductibility Provisions
                                                       Quotes & Additional Info

-1---What are Medical Savings Accounts ?

Briefly, Medical Savings Accounts are Tax Deductible Savings accounts
that are married to a Qualified Health Insurance policy.

       The Health Insurance Policy has a high deductible , normally from
        $1600 - $2400 for individuals & $3200 - $4800 for families.
        Benefits can payable at 100% after the deductible.

Costs below the deductible reduce Federal taxable income on your 1040.

-2---Who is eligible for these plans?

Self Employed, Businesses with less than 50 employees, Professionals,
Real Estate & Insurance Agents Etc.

-3---What is the advantage over normal health plans ?

Premiums for are a great deal less expensive that traditional plans.

        Medical expenses below the deductible reduce your Federal Income Tax.

-4--Congress has determined that a wider than normal list of expenses will qualify.
      See Medical Expenses that Qualify. All forms of medical, dental, vision, herbal,
      chiropractic, massage, mental & drug are allowed expenses.

      Normally expenses incurred before medical insurance pays are not deductible
      because the threshold where deductibility starts is 7.5% of adjusted gross income
      and you must itemize deductions on your tax return. Most do not reach this threshold

     A person who has an adjusted gross income of $50,000 per year would need to exceed
    $3750.00 per year before they begin to be deductible. (The 1st $3750.00 is lost ,
      in any event. It simply gets you to the threshold of starting to be able to deduct expenses.)

-5--Is it true that a Medical Savings Account
         can be used as a "Second Individual Retirement Account"?

    Yes, if you choose to not withdraw funds from your MSA Account. Then the money
       can remain there for the next year and the next, and you can contribute up to your
       limit each year, deducting it.    The money can accumulate at interest or in a mutual
       fund until you retire or reach age 59 1/2. While the money is available at any time
       there are certain penalties attached to taking over funding amounts early. (10%)

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