Health Savings Account restrictions
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: My health insurance is provided through my wife who is a teacher and gets great benefits including full health and dental insurance. I want to start a Health Savings Account for myself and the other two employees of my small business. How do I do this?
A: Unfortunately the tax laws were specifically designed to prevent a person in your situation (with full health insurance) from using a health savings account. Health Savings Accounts require that you give up your full coverage and elect a high deductible insurance that covers only catastrophic care. A better option in your case is a Health Reimbursement Arrangement (HRA) that is not subject to these tax rules and insurance restrictions. See www.FreedomBenefits.org for more information and setup instructions.
Summary
More resources:
http://www.freedombenefits.org http://www.healthsavingsaccount-hsa.com