How Oakland County Residents Turn IRA Dollers into a Health Savings Plan

Individual Retirement Account (IRA) Health Savings Account (HSA) Oakland County


Investing in an IRA is simple, whether you’re putting it into mutual funds or a Bank CD, the rules are the same. Getting it out without paying Uncle Sam is the tough part. It is possible to use your IRA, tax-free, to help with medical expenses by transferring it to a special health savings account.

Qualify for a Health Savings Plan in Oakland County

People with high-deductible health plans qualify for a health savings account (HSA). A high-deductible health plan is one where you are responsible for paying the first $1,150 of your own expenses for an individual plan or $2,300 for a family plan. The high deductible is in exchange for lower insurance premiums than traditional health insurance.

Once you obtain this type of coverage, you can open your health savings account and make a tax-free rollover from your IRA. You may move up to $3,000 to an HAS for individual coverage or up to $5,950 for family coverage. If you are 55 or older, you can contribute an extra $1,000 in 2009.

Benefits of HSA Plans in Oakland County

The benefit of having a health savings account is that you can use the money to pay your medical expenses without being forced to pay Uncle Sam! In addition, your HSA can grow tax-free like your IRA.

The IRA to HSA rollover is a once-in-a-lifetime option, so it’s a good idea to transfer the maximum allowed to establish the account. Anyone under the age of 65 who buys a qualified high-deductible policy can open an HSA.

Each year, you may contribute the maximum amount to your HSA; in 2009, it is $3,000 for individuals and $5,950 for family coverage. HSA’s can be opened on your own or through your employer. The first step is to find a list of health insurance companies who offer HSA-eligible plans in your state at HSAinsider.com or you can compare several companies’ policies in most states at eHealthinsurance.com. You can also search for a local agent who knows which policies are available in your area at the National Association of Health Underwriters web site.

Michael McGee provides help with financial planning, SIMPLE IRA, real estate IRA, traditional IRA, Roth IRA, SEP IRA, self directed IRA, 401-K plans, college funding, 529 college savings plan, tax shelter, investment savings, family savings and financial security for consumers and business owners in Oakland County, Pontiac, Waterford, West Bloomfield, Farmington Hills, Southfield, Royal Oak, Rochester, Troy, Novi and neighboring cities and communities.