Tax Relief and Health Care Act of 2006

Dec 12, 2006

  1. James
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    James Guru

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    Big news, I was wondering why some of the financial boards were a buzzed with talk of HSA's. Now we know, I suppose the CFP will be trying to get the SEC and the NASD to take control of the HSA, now we can go out and roll over IRA money into the HSA!
     
    James, Dec 12, 2006
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  2. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    why would someone do that......
     
  3. Zydo
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    Additionally, the new bill allows for unlimited contributions as well as allowing taxpayers to make a one-time rollover from an IRA to fund an HSA.

    Depending on your clients situation, this could be huge.
     
    Zydo, Dec 12, 2006
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  4. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    and after that.....how accessible is the money.....can you pull it out for non~medical needs ......LIKE RETIREMENT.....
     
  5. James
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    At times the obvious seems to go right pass you doesn't it?
     
    James, Dec 12, 2006
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  6. somarco
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    somarco That Medicare Guy

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    Yes.
     
    somarco, Dec 12, 2006
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  7. aufan
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    aufan Super Genius

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    Sti...

    I assume that just like in an IRA, there will be penalty for early withdrawal. Currently any non qualified withdrawal from an HSA is subject to penalty.

    However, I don't get your question as far as retirement? HSA accounts basically turn into retirement funds once the client qualifies for Medicare and also can be used to pay Medicare A and B premiums. I assume that won't change? That's why this new law makes so much sense. One of the HSAs I sell is currently paying 6.15% so that is better than a lot of retirement vehicles I know of. It could be huge for my business.
     
    aufan, Dec 12, 2006
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  8. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    sorry I was off on that one on retirement after age 65......but still rate of returns on HSA accounts suck.......
     
  9. Zydo
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    There are HSA accounts available that have mutual fund components. Clearly, not all HSA returns suck.

    That being said, an individual's IRA that is in mutual funds would have the same rate of return and/or exposure if those monies were in the same mutual fund inside an HSA.

    Whether that is possible or not depends on which mutual funds are currently being used inside the IRA and what is available in the HSA.

    It's easy to see why all the financial boards are buzzing.....no yearly contribution caps into an HSA and the ability to roll an IRA could make for some interesting strategies for certain groups.
     
    Zydo, Dec 13, 2006
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  10. STIBROKER
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    personally I don't see this lasting long....if it passes.....
     
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