However, in the Zero Balance savings account
, you need not maintain a minimum balance.
The health savings account
program gives taxpayers who buy eligible health coverage with minimum deductibles a chance to put cash in a special fund without paying federal income taxes on the contribution.
Paul Stokes, head of products at M&S Bank, said: "It's great that the vast majority hold savings accounts
and, more importantly, half are choosing to save regularly.
These exclusions of pooled trusts and investment designations might impact the way people with disabilities are able to maximize the benefits of setting up one of these savings accounts
For example, according to Revenue Ruling 2004-38, combining a prescription drug card with a High Deductible Health Plan will disqualify the policyholder from participating in a Health Savings Account
Rather than raiding the piggy bank we suggest factoring these unforeseen costs into the annual budget, this way savings accounts
aren't affected when emergencies crop up.
Another worry is that people will opt for the high-deductible insurance, but have nothing to invest in the health savings account
to help them pay that large deductible.
Basically, medical costs are rising so fast that a health savings account
simply will not be able to keep up.
Employers can match employee health savings account
contributions, but less generously than the qualified retirement plan match.
Created by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, the Health Savings Account
(HSA) offers advantages over other savings vehicles--it is not limited to employees of small businesses and the self-employed, the unspent balance rolls over at year-end for further use, and the account is portable because it is owned by the individual.
What is a health savings account
(HSA) program, and what can it do for my business?
Nearly three-quarters of the respondents said it was very likely or somewhat likely that they would offer a high-deductible health plan with a health savings account