Many employees in the area may soon decide on health savings or reimbursement plans in addition to the finest health insurance option for 2023. Below are three types of accounts available:
Health savings account (HSA) Individuals with high-deductible health plans who qualify can use this kind of savings account to pay for deductibles, copayments, and other out-of-pocket medical expenditures. In addition, employees can accumulate funds to pay for current and future medical costs thanks to the HSA funds’ yearly rollover. Account holders of HSAs can use their contributions to purchase mutual funds inside their accounts. Just like an IRA or 401(k), this money can continue to be utilized tax-free for medical expenditures after retirement for any reason, taxed as income without incurring any penalties. The IRS has put certain limitations on HSAs. Employer and employee contributions will total $3,850 for individuals and $7,750 for families in 2023. A catch-up contribution of $1,000 annually is available to account holders 55 and older. Employees should have a high-deductible health plan to be eligible for this account. The minimum deductible levels for 2023 are $3,000 for families and $1,500 for individuals. For an individual, the maximum out-of-pocket expenses are $7,500, while for a family, they are $15,000. According to Richard Argentieri, chief sales and marketing officer of Independent Health, out-of-network services are exempt from this limitation.
Flexible spending account (FSA) One of an FSA’s advantages is that it may be set up as a Dependent Care FSA (DCFSA), which allows withdrawals for childcare expenses. Employees can fund their accounts with a specific percentage of their pre-tax income at the beginning of each plan year. Employees must spend this money during the plan year, but the plan may provide a two-and-a-half-month grace period or a carryover of up to $610 in funds in 2023. After the plan year, any unused funds are refunded to the employer. If an employee is married in 2023, each spouse may contribute to their employer-provided FSA of up to $3,050, even if both spouses are members of the same account sponsored by the same company. An employment plan may further limit the payments.
Health reimbursement arrangement (HRA) Employees can use these employer-owned accounts to cover medical expenses, including deductibles, copayments, coinsurance, dental work, and eye care. The employer is the only party that contributes. The employer determines how much money is accessible in this account. After the plan year, the employer can excess funds or roll them over to the following year. There isn’t a set minimum or maximum.
Contact Information:
Email: [email protected]
Phone: 9143022300
Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial [email protected] 914-302-2300
