Pros and Cons Individual Plans for a Group.

[Fisher]

Nope. To get around it, you essentially bonus the EE's, then take it out as a pre-tax deferral.

I must be dense. Take the money out for what?

 

[ABC]

Hold up a sec... are you saying the biz owner can contribute money into the employees' HSA for the purpose of paying the IFP premiums? 'Cuz I've been told that premiums canNOT be paid through an HSA.

Maybe I'm just reading you wrong, ABC, but I can't think of another reason that the owner would toss cash in the employees' HSAs. It would be cool if I have been given incorrect info.

'Splain please.

The employer funds the HSA account for the employees.

This is an option for the employer to still contribute something to the employee if they drop the group health.


It basically is an employee benefit without technically being an employee benefit.

 

[DS4]

As taxable compensation, yes?

No

I work for my own corporation. I have a $2500 compatible HSA insurance plan. My corp wrote a check to my HSA acct for $4,050 ($3050+$1000 age 55) for 2010. This $4050 is tax deductible to my corp. I can then, draw money out to cover HSA eligible expenses, or, let the money accumulate and somewhere later, after retirement, draw the money out and then pay taxes. Right now, my taxes are 42.3%, 33% Fed + 9.3% state. Once I retire, my tax brackets will drop considerably.

 

[Agentjane]

No

I work for my own corporation. I have a $2500 compatible HSA insurance plan. My corp wrote a check to my HSA acct for $4,050 ($3050+$1000 age 55) for 2010. This $4050 is tax deductible to my corp. I can then, draw money out to cover HSA eligible expenses, or, let the money accumulate and somewhere later, after retirement, draw the money out and then pay taxes. Right now, my taxes are 42.3%, 33% Fed + 9.3% state. Once I retire, my tax brackets will drop considerably.

but you'll only pay taxes on the interest and/or if you spend the money on something other than medical expense correct?...

 

[DS4]

but you'll only pay taxes on the interest and/or if you spend the money on something other than medical expense correct?...

No taxes on the interest. Think of an IRA.
If you spend the money on something other than an eligible medical expense, IRS comes a knocking.

 

[bill3173]

The employer funds the HSA account for the employees.

This is an option for the employer to still contribute something to the employee if they drop the group health.


It basically is an employee benefit without technically being an employee benefit.

Yep, got an employer right now fully funding 3 families HSA accounts, no group health.

 

[Fisher]

Yep, got an employer right now fully funding 3 families HSA accounts, no group health.

And the employees are paying their own IFP premiums?